COMMERCIAL ACTIVITY IN THE SYSTEM OF A MULTILEVEL SUSTAINABLE DEVELOPMENT ECONOMY

Abstract

Abstract

It is substantiated that under contemporary challenges, including those caused by the war in Ukraine, commercial activity extends beyond a purely instrumental approach focused on achieving current economic efficiency and becomes an integral component of the sustainable development process. It is argued that within a multilevel economy, conditions are created for the integration of economic, social, and environmental priorities into economic and commercial interactions at the micro-, meso-, macro-, and supranational levels. The concept of a multilevel economy of sustainable development is clarified, and its key characteristics are identified, including multilevelity, systemicity, and orientation toward sustainable development. It is asserted that within such a multilevel economic system, commercial activity integrates production, exchange, consumption, and investment processes and ensures the creation of sustainable added value.

The analysis of classical approaches to the interpretation of commercial activity revealed their limitations from the perspective of sustainable development, particularly the underestimation of the social and environmental consequences of commercial decisions and the absence of a long-term horizon for assessing commercial performance. Based on this, an author's interpretation of commercial activity within a multilevel economy of sustainable development is proposed. It is defined as a set of interconnected commercial processes and operations implemented by business entities within market interactions and aimed at ensuring the efficient exchange of goods and services through the integration of economic, social, and environmental objectives, adherence to the principles of social responsibility, and orientation toward the long-term sustainability of results.

The expediency of applying an integrated approach to the assessment of commercial activity is substantiated, involving the combination of economic, social, and environmental indicators. Such an approach makes it possible to consider commercial activity not only as a source of financial outcomes but also as a tool for enhancing the adaptive capacity of economic systems and ensuring their sustainable development. The functions of commercial activity within a multilevel economy of sustainable development are systematized, and the specific features of their implementation at different economic levels are revealed. Particular emphasis is placed on strengthening the role of the territorial space as an arena for reconciling economic, social, and environmental interests, within which local self-government bodies act as active participants in shaping sustainable commercial practices. Examples of sustainable commercial practices in public procurement, business activities, industrial parks, cluster initiatives, medical clusters, the circular economy, and partnership projects demonstrate that the integration of sustainable development principles into commercial activity contributes not only to social and environmental outcomes but also to the formation of long-term economic resilience of territories and business entities.

Introduction. The urgency of ensuring sustainable economic development at all levels of its functioning is driven by the current intensification of socio-economic and environmental challenges, as well as the growing negative impact of crisis factors, particularly those caused by the war in Ukraine. Commercial activity within a multilevel economy of sustainable development is an important instrument for enhancing economic resilience, social responsibility, and environmental balance.

Purpose. The purpose of the article is to substantiate the role of commercial activity within a multilevel economy of sustainable development and to generalize approaches to the transformation of commercial activity aimed at ensuring the environmental balance of economic development processes and the social responsibility of business entities.

Methodology. The methodological basis of the study consists of the principles of the sustainable development concept, institutional economics, public management theory, and approaches to the analysis of the multilevel organization of the economy, which made it possible to consider commercial activity as a component of a socio-economic system integrated into the process of ensuring sustainable development. To achieve the stated objective, a set of research methods was employed. Analysis and synthesis were used to generalize scientific approaches to the interpretation of commercial activity and to identify the limitations of classical economic interpretations in the context of sustainable development. A systems approach was applied to demonstrate the interrelationships among the levels of the multilevel economy and to determine the functional role of commercial activity at different levels. Comparative analysis was used to compare traditional and modern approaches to assessing commercial performance, taking into account economic, social, and environmental criteria. An institutional approach was employed to analyze the role of formal and informal institutions in creating conditions for the implementation of sustainable commercial practices, particularly the role of local self-government bodies as active actors of economic influence. Generalization and systematization of empirical examples made it possible to illustrate the practical implementation of sustainable commercial practices at the territorial level.

Results. The implementation of national sustainable development priorities, the need for economic recovery and structural transformation in the context of post-war challenges, and the necessity of harmonizing economic, social, and environmental goals and priorities require a reconsideration of the role of commercial activity as a component of state economic policy and as an instrument for ensuring sustainable development within a multilevel system of economic governance. These processes acquire particular importance at the local level, where local self-government bodies create conditions for the development of local markets, the implementation of sustainable commercial practices, and the strengthening of the long-term economic capacity of territorial communities. In this context, commercial activity is viewed not only as a sphere of market interaction but also as a factor in stimulating local economic development, territorial recovery, and the achievement of sustainable development goals.

Practical implications. The results obtained are applicable both theoretically and practically for the formation and implementation of local economic policies aimed at sustainable development, as well as for strengthening the social and environmental orientation of commercial activity.

Keywords: multilevel economy; sustainable development; commercial activity; economic policy; circular economy; sustainable commercial practices; local self-government bodies; territorial development.