Business regulation represents in post-pandemic period an extremely complex and dramatic phenomenon which includes a number of issues to be dealt with while analysing new aspects in entrepreneurship affected by modern challenges. Most common spheres of interest to business mangers presently are those of business modeling in critical time, compliance management in dealing with the increasing regulatory instruments, digital business technology, including specific for regional future “social entrepreneurship”.
Modern global/European challenges are rapidly changing traditional politics and economics by constantly moving from existing liberal economy concepts to more publicly and state regulated directions. Deep state’s involvement into various sorts of business regulations has been apparent in the EU institutions’ activity and in most European countries; the former are presently dominating in the states’ socio-economic development and legislation.
Affected by evident challenges, the old political-economy’s paradigm is being subject to serious alterations: thus the two previously rather separated spheres of governance (i.e. economics and political science) are “refurbishing” towards closer and inherent “unified connections” by concentrating on the most urgent national priorities. Thus, innovation, decarbonisation and modernisation are becoming major drivers in the entrepreneurship’s anatomy.
While finding common denominators in national political, economic and business regulations’ trajectories affected by the pandemic, the mentioned challenges and changes are becoming vital for entrepreneurship. In “business regulations” the main trend seems to be towards closer orientations on dominating sustainable development goals, the needs of reducing pollution and increased circular economy’s patterns, growing business digitalisation and corporate social responsibility, to name a few…
More in: https://www.integrin.dk/2021/08/27/sustainability-in-modern-political-economy-resolving-pressing-issues/
Modern business management is more than just a concept; it represents an integrated approach to all aspects of corporate activities and the external environment (the latter includes, mainly, relationships with customers and evolving consumption patterns).
Answering the question of “business ideology”, one has to keep in mind two essential and evolving aspects of modern business: gaining profit and corporate social responsibility (CSR); while the former has been a constant entrepreneurship’s component, the latter is the result of modern challenges affecting national growth and peoples’ wellbeing.
From the “inside-business” structures, two elements seem vital: first, an integrated technology adaptation (as a result of fundamental digitalisation) that combines business management’s functioning, incl. investment, planning, modeling, financing, etc. With fundamental transitions in governance that includes sustainability, climate change measures and social inclusion.
For a perspective business to survive, all the mentioned elements combined have to be “incorporated’ into a company’s internal and external facets necessary to make right decisions while following regulatory burden.
Secondly, it is a socio-cultural “corporate evolution” that empowers employees to ensure that a company is continuously adjusting to existing challenges and CSR while constantly adapting to customers’ evolving needs.
More in: https://www.broadcom.com/sw-tech-blogs/ppm/the-modern-business-management-environment-operating-at-the-speed-of-business-clarity-ppm
Corporate externalities are vital as well: every business is dependent on financial resources and investments. Presently restricted national budgets forced businesses into liquidation or/and indebtedness: hence, the EU argues about “sensible structural reforms” in the member states and careful approach to priority-investments. National public debt agencies (generally, ministries of finance) are in tough position to support businesses. The EU’s intervention comes as the Union’s institutions insist that starting from early 2022 the Stability and Growth Pact (SGP) rules would be subject to reforms; these rules were designed to force national governance toward responsible economic behavior and make those changes more permanent. However, these rules (while being vital to many fiscally prudent EU states) were suspended during the pandemic as most countries struggled to safeguard their pandemic-battered economies.
The 2020 France’s Council Presidency suggested a “blueprint” for further reforms including a proper use of the EU €800 billion recovery fund (coped with NextGenerationEU program), which includes such changes of the game that allow the EU-27 to collectively issue debt. Besides, the “blueprint” suggests transferring part of national debts accumulated during the pandemic “from the balance sheet of the European Central Bank to a European debt management agency. The availability of new financial resources in the states is closely linked to implementation of socio-economic reforms and investments likely to raise productivity, strengthening corporate initiatives and social cohesion; in this manner, business is becoming an integral part of the “recover-resilience” plans in the state’ governance.
Note. Increase in public debt and average debt ratio will be at about 20 percentage points in France and by about 30 points in Spain and Italy; seven countries (with the exclusion of Holland) in the euro area are showing debt-to-GDP ratios well above 100%: Greece climbs to 205%, Italy to 162%, Portugal to 137%, France and Spain to about 120%, and Belgium to 118% (while according to SGP it cannot exceed 60%!). This situation doesn’t allow businesses to survive, to say nothing about perspective expansion: in most EU states public policies managed to limit the damage to corporate activities but didn’t address the problem of restoring sustainable growth to acceptable levels…
However, the acceptance of a high sovereign debt in the member states can be positive in accelerating entrepreneurship’s spirit and corporate ideology.
The modern trends in business ideology are evident: towards a knowledge economy and away from manual labour; the technological innovations being developed and used by businesses; active business ethics, organised corporate social responsibility (CSR) and/or environmental-social goals followed by globalisation. Bottom line: four major forces are expected “to shape the world of modern business”, such as knowledge, technology, ethics and globalisation.
Anatomy of business
Presently, business activity is becoming an integral part of national socio-economic development: thus, the EU states’ recovery-resilience plans can be successfully implemented only with the prosperous and efficiently functioning entrepreneurship. The EU’s “advise” is clear cut: the states have to prioritise in their budgets two main transitional priorities, i.e. climate change preventive actions (37% of the budget) and digital economy-society’s measures with 20 percent. Therefore, about 60 percent of national budgets have to be allocated for tackling two main challenges! But, it is not just a “directive”; it provides for a good orientation for business start-ups and management to comprehend that these directions are not only in the interest of society, they are being a source of financial support from national budgets.
Perspective growth pattern in the EU explore these priorities in the long-run: for example, France-Czechia-Sweden Council Presidency Trio 2022-2023 already announced at the end of 2021 some critically important issues for the states’ recovery involving biodiversity, sustainable development, tackling the crises of climate and pollution and to help make the European Green Deal the transformative agenda in the national governance. These priorities are undoubtedly vital for modern changes in business anatomy, as corporate entities are being purposefully oriented: from the European side came an important “addition” – the states’ budgets shall be composed of two vital transitional elements (climate measures and digitalisation); for businesses it is good news: exploring these priorities provides for apparent source of financial support.
French Presidency of the Council of the EU from January to June 2022, following the Presidencies of Slovenia, Portugal and Germany, has inherited significant legislative and policy responsibilities for the EU’s complex environment-health-social agenda with a number of high-profile policy issues like the EU’s double priorities “Fit for 55” and “Zero Pollution” action Plans.
The “coal case”
For the EU states to implement the Paris Agreement goal of limiting global warming to 1.5°C, as well its own pledge to achieve zero pollution as part of the European Green Deal, required to phase out the use of coal by 2030. The dangers of coal for peoples’ health are becoming increasingly vital as the profitability of the sector continues to fall; hence, a coal-free Europe agenda has become an inevitable reality. However, for governance and business structures in numerous EU countries are still remain reluctant to eliminate coal in energy mix. Several member states’ coal industries are on the brink of collapse and huge sums are needed to bring it into line with EU emissions standards, to better use renewable energy investments and retraining schemes for workers. In order for EU to eliminate coal, it needs to ensure a just and green transition from coal, avoiding fossil gas lock-ins that misalign with climate neutrality ambitions, recommends the European Environmental Bureau.
The progress towards a Europe beyond coal has been accelerating like never before – but not everyone in the EU has been on their best behavior when it came to coal in 2021. Some EU states were in the naughty and some in the nice list in 2021. Portugal became the fourth EU state to eliminate coal by closing its last remaining coal plant in November 2021 thus joining the EU-non-coal-club alongside Belgium (from 2016), Austria and Sweden (being coal free in 2020). Germany introduced at the end of 2021 an accelerated coal phase-out plan to “ideally eliminate” coal by 2030. Greece announced that it would eliminate coal three years earlier than planned, in 2025, when its last lignite plant is set to close; thus the country will join Hungary, Ireland and Italy on the “nice list” with other states which set to phase out coal in 2025, alongside France to do so even earlier in 2022.
On the “naughty list” there are: Poland which tops the coal-naughty list in 2021, sticking to its distant 2049 date for a coal phase at the 2021 COP26 in Glasgow the country “backtracked just hours after signing an international commitment to exit coal”. Meanwhile, the Turów mine at the Polish borders with the Czech Republic and Germany continues to run, despite the EU Court of Justice ruling that operations must be halted to prevent irreversible environmental damage: the court ordered a €500,000 fine to be paid by Poland to the European Commission every day the mine continues to operate, a price that could be better spent on green transition measures in the Turów community.
Bulgaria, another state heavily dependent on coal, continues its usage: the country’s phase-out plan mentions in the country’s pandemic recovery plans the dates for 2038-2040; besides, over 60% of Bulgarians want coal mines’ activity to be halted by 2030 and having cheaper and renewable energy sources.
Vital elements in business anatomy
The following elements signify modern business anatomy:
= New approaches to “business process, BP”. The BP, usually, is defined as a specific collection of business tasks, goals, outcomes and short- long-term activities performed by company’s staff and managers in search of reaching the company’s “business goals”. Therefore, as a rule, business process includes the following elements: – company’s tasks and goals; – business’ systematic activity; – staff’s workflow specification, and – digital information and data processing. Each of these elements requires constant and professional attention of “process managers”, while taking care of a specific element’s importance in the business processes. Optimal and efficient business process management (BPM) needs an elaborate strategy aimed at increasing the success of business in question; according to some accounts, elaborate BPM can increase corporate outcomes by about 70 percent! Therefore business organizations around the world invest significant amount of resources and time to manage and improve their business processes.
= New sectoral laws vital for businesses
There are several new spheres of socio-economic activities that provide for additional attention in the BPM. The following legal sectors have been actively affecting modern business processes:
– Construction law (see main reference: https://www.integrin.dk/2021/12/20/european-new-regulations-approaching-the-eu-construction-law/);
– Employment law (see main reference to: https://www.integrin.dk/2021/12/28/european-employment-law-new-direction-in-social-policy/);
– Climate law (see main reference to: https://www.integrin.dk/2021/12/26/climate-energy-regulation-new-sector-of-the-european-law/, and
– Digital law (see main source at: https://www.integrin.dk/2021/12/27/european-digital-law/
Presently, entrepreneurship feels pressure from several sides: a) from dramatic changes due to covid-pandemic and omicron; b) from numerous global challenges, such as digitalisation in society and economy, climate-affected regulations, sustainability, and circular growth, etc., and last but not least, c) increasing pressures for business-process regulations.
Agile accommodation to these “pressures” depends on corporate management’s ability (mental, physical, resourceful, etc.) to tackle modern challenges: efficient business process management helps to elaborate strategies aimed at increasing the success of business. According to some accounts, elaborate management can increase corporate outcomes by about 70 percent! Therefore business organizations shall invest significant time and resources to accommodate and improve their business processes.
But national governance has also a say in this changes helping corporate entities to perform both profitably and socially-environmentally responsive. The European Union’s institutions are providing both political guidance and regulatory means for businesses in the member states. Thus, during last decade several new legally regulated spheres appeared in the EU law dealing with climate changes and construction, digitalisation and employment, etc. (as mentioned above). But, finally, it is up to the states to make business more efficient and responsive to modern challenges.