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MEASURING SUSTAINABILITY PERFORMANCE ON THE EXAMPLE OF ESTONIAN STATE-OWNED FOUNDATIONS
Abstract
This paper provides a methodology for assessing sustainability performance by using financial reports of organisations. In this process, we applied Talcott Parsons’ AGIL paradigm, which is based on system theory and states that the continuity of a social system requires the balance performance between all four components of the system: adaptation (A), goal attainment (G), integration (I) and latent pattern maintenance (L) or values [1]. In her doctoral thesis, Roostalu proved that the AGIL paradigm constitutes a general sustainability model [2]. Based on that, we developed an original model for assessing sustainability performance. Additionally, we experimented this model on the 2015 profit and loss accounts of 70 Estonian state-owned foundations by using several expenditure accounts as sustainability indicators, determining the levels of each sustainability dimension. Our model indicates that there have been positive results in adaptation (A) and values (L), but the levels of integration (I) and goals (G) remain low. Foundations are organisations that collaborate with the state in order to achieve goals of public interest. Our results show that there is a need to deepen the systemic and holistic approach to the management of sustainable development in the public sector. Moreover, these results draw attention to the importance of the theoretical heritage of Talcott Parsons for sustainability researches.
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References15
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