Compliance as a Driver of Sustainable Economic Development and Business Growth in the Context of European Integration

Abstract

This article analyzes the strategic role of the compliance function as a pivotal administrative-legal mechanism that fosters sustainable economic development and corporate growth within the framework of European integration. The investigation focuses on how institutionalized compliance systems serve as a catalyst for investment attractiveness and market transparency, particularly during Ukraine’s alignment with EU standards. The research employs a black letter legal method to examine key instruments, including the Corporate Sustainability Due Diligence Directive (CSDDD), the Rule of Law Conditionality Regulation, and Ukraine's Anti-Corruption Strategy for 2021-2025. This analysis is supplemented by a review of CJEU case law and OECD monitoring reports. The results indicate that while Ukraine has established a sophisticated anti-corruption infrastructure, its economic impact is hindered by a persistent commitment-capacity gap and merely symbolic, box-checking compliance at the corporate level. Furthermore, comparative analysis with Germany, Italy, and Hungary demonstrates that a one-size-fits-all approach is ineffective; compliance outcomes are profoundly shaped by national legal traditions, external financial conditionality, and the discretion of street-level administrators. The findings establish that integrating ESG principles into corporate compliance frameworks is a crucial driver for standardizing sustainability reporting, reducing systemic market risks, and building institutional trust. The article concludes that a robust, practically adaptable compliance function is indispensable not only for combating corruption but also for ensuring the institutional resilience and macroeconomic stability required for successful European integration and post-war economic recovery.