CC BY
1Yu. PULATOV,
Westminster International University in Tashkent, Ph.D.
B. ISLAMOV,
Tashkent Branch of REU named after G.V. Plekhanov, DSc., professor
THE IMPACT OF CORPORATE GOVERNANCE PRACTICES ON SUSTAINABLEREGIONAL DEVELOPMENT: A COMPARATIVE ANALYSIS
https://d0i.0rg/l0.5281/zenodo.12162363
Introduction. The importance of corporate governance in shaping regional sustainability is growing while the world community is striving to understand its intricate relationship with social well-being, environmental protection, and economic development. The focal point of this research will be Uzbekistan, with its diverse cultural legacy, ambitious economic goals, and abundant natural resources. Especially after the introduction "Uzbekistan - 2030 Strategy" by Presidential Decree PF-158 in September 11th, 2023 which came as an evolution of the previous "Development Strategy of New Uzbekistan" from 2022 (Mirziyoyev, 2023), the country has become a center of attention an enquiry by academic world (Uwed.uz, 2023). In this context, our study aims to clarify the complex connections between sustainable regional development and corporate governance practices, with a focus on the critical roles played by small and medium-sized businesses (SMEs).
Under President Shavkat Mirziyoyev's leadership, Uzbekistan is going through a profound transformation, and one of the result of this transformative journey is a renewed emphasis on sustainability. President Mirziyoyev's announcement on January 23, 2024, of a sustainability grading system for companies highlights his dedication to supporting environmentally friendly economic practices (Presidential Decree PQ-39, 2024). This innovative step acts as a spark for our investigation, starting a journey to discover how corporate governance practices—especially those of SMEs—interact and support the more general objectives of sustainable regional development. Motivation and Significance:
The motivation behind this research lies in the recognition that sustainable development is a complex trend consisting of social equity, environmental resilience, and economic prosperity rather than just an economic necessity. With its several regions, each with its own challenges and opportunities, Uzbekistan offers an intriguing backdrop for a thorough investigation (UNECE, 2022). The goal of the study is to close the knowledge gap on the effects of corporate governance
practices within SMEs on the social, economic, and environmental landscapes of Tashkent City, Tashkent Region, and Samarkand Region which are the top 3 regions in terms of number of small businesses (Statistics Agency, 2022)
Fundamentally, the goal of our research is to provide practical insights that local businesses, communities, and legislators may use. The research also strives to provide guidance for business practices, regulatory decisions, and the creation of a more fair and resilient regional future by analyzing the intricacies of corporate governance and sustainable development in Uzbekistan. Objectives
• Impact Assessment
The main goal is to carry out a thorough analysis of how corporate governance practices affect the social, economic, and environmental aspects of sustainable development in Tashkent, the Tashkent Region, and the Samarkand Region. The study acknowledges that good corporate governance encompasses more than just financial performance; it also includes broader contributions to the welfare of the local community.
• Stakeholder Perspectives
Exploring the viewpoints of SME representatives in order to add qualitative depthto the quantitative data. My goal is to document the experiences and stories of people leading small and medium-sized enterprises (SMEs) in Uzbekistan through in-depth interviews and structured surveys. Their perspectives are essential to comprehending the complexities of corporate governance's impact on regional development from the ground up.
• Quantitative Analysis
Performing a quantitative examination of the complex links between certain corporate governance practices and important indicators of sustainable regional development, using the Partial Least Squares (PLS) model. The objective of this quantitative analysis is to offer a strong foundation for comprehending the quantitative effects of governance methods on environmental, social, and economic aspects.
• Policy-Based Suggestions for Improving Corporate Governance
Converting the study findings into recommendations that policymakers may implement. Making thoughtful recommendations on how to improve corporate governance procedures so that they better support the regional sustainable development goals. Contributing to the creation of laws that support sustainable development and responsible governance.
• Identification of SME Challenges and Opportunities
Discovering and evaluating the special Challenges and Opportunities that SMEs face when they work to improve the well-being of their local communities. By highlighting the situations in which SMEs can prosper and the areas in which assistance might be required, this objective seeks to offer insightful information on therole that SMEs play in sustainable development. Methodology
The study uses a mixed-methods strategy to strengthen the conclusions' credibility and triangulate data. Semi-structured interviews are used to gather qualitative in which SME representatives are asked to share their viewpoints and experiences. At the same time, a representative sample is given structured questionnaires to complete, collecting further quantitative data on corporate governance methods and their perceived effects. The Economic, social, and environmental variables needed for the analysis are collected from Uzbekistan Statistics Agency, ensuring a solid dataset representative of the areas being examined. The quantitative portion of the analysis uses the PLS model. A more thorough comprehension of the connections between sustainable regional development indicators and corporate governance is made possible by this model. Expected Contributions
Other than the contributions to academic world, the paper aims to provide practical insights that are relevant to Uzbekistani community. The following contributions could be expected at the end of the research:
• Giving decision-makers thoughtful suggestions on how to improve corporate governance procedures so that they better support the sustainable development objectives of the three areas being studied
• Contributing to a better understanding of SMEs' place in the role of sustainable development by exposing the special opportunities and challenges they face as they work to promote regional well-being.
Second Phase of the Research
The second phase of the study shifts its focus to Uzbekistan's recently implemented sustainability rating system for enterprises. President Shavkat Mirziyoyev unveiled this innovative approach on January 23, 2024 (Presidential Decree PQ-39, 2024), which is a big step toward encouraging environmentally friendly corporate practices. By closely examining and contrasting the results of this innovative rating system among the three regions—Tashkent City, Tashkent Region, and Samarkand Region—the study expands its effect evaluation.
This two-phase method seeks to assess the sustainability rating system's efficacy while also exploring how well it aligns with and influences the sustainability objectives of SMEs in Uzbekistan. Through comparing the ratings system results with the experiences and perspectives of small and medium-sized enterprises, the study aims to provide a thorough knowledge of how government-led efforts can support andencourage sustainable business practices. Conclusion
To sum up, this research project has the potential to close gaps between theory and practice, research and policy, and goals and real-world effects. The study attempts to add to the continuing narrative of progress and resilience by offering a comprehensive understanding of the influence of corporate governance on sustainable regional development in Uzbekistan. In addition, the review of the recently implemented sustainability rating system offers a chance to assess how well government programs are working to promote sustainability at the local level.
This study serves as a guide for future research papers in the area of business practices and regional prosperity in Uzbekistan. Other than that, the paper aims to improve academic literature while also positioning itself as a useful tool for stakeholders, entrepreneurs, and governments working toward a resilient and sustainable future.
References
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2. Shavkat Mirziyoyev. Presidential Decree PF-158. (2023) "O'zbekiston — 2030" Strategiyasi To'g'risida, LexUZ. Available at: https://lex.uz/ru/docs/6600413 (Accessed: 27 January 2024).
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