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Corporate Social Responsibility in Terms of Sustainable Development: Financial Risk Management Implications

Author

Listed:
  • Denis E. Matytsin

    (Department of Civil and International Private Law, Volgograd State University, 400062 Volgograd, Russia
    Department of Civil Law and Procedure, International Law Institute (Volzhsky Branch), 404106 Volzhsky, Russia)

  • Yelena S. Petrenko

    (Department of the Theory of Management and Business Technologies, Plekhanov Russian University of Economics, 115093 Moscow, Russia)

  • Nadezhda K. Saveleva

    (Institute of Economics and Management, Vyatka State University, 610000 Kirov, Russia)

Abstract

The motivation for this study was a new context associated with the increased cyclical nature of the economy and, accordingly, the increased financial risks of the business, which complicated the implementation of corporate social responsibility. The purpose of the article is to explore the relationship of corporate social responsibility with the financial risks of the business and explain this relationship in terms of sustainable development (SDGs). The article contributes to the development of the concept of financial risks of the business by clarifying their connection with corporate social responsibility and substantiating the relationship between the financial risks of the business. Structural equation modeling (SEM) showed that in 2020–2021, financial risks have demonstrated a complex (in most cases negative) relationship with each other and a contradictory impact on corporate social responsibility. The complex systemic relationship between corporate social responsibility and financial risks of business from the point of view of sustainable development is substantiated. In the context of increased financial risks, by systematically implementing SDGs 8, 9, 11, and 12, responsible companies get the opportunity to restore and improve their position in the market. The significance of the findings for businesses is that they proposed the SDGs as a promising new benchmark for business financial risk management. This will allow responsible companies to find a new Pareto optimum in the current conditions of uncertainty and determine for themselves the preferred level of corporate social responsibility that contributes to the effective financial risks of business management in the long term.

Suggested Citation

  • Denis E. Matytsin & Yelena S. Petrenko & Nadezhda K. Saveleva, 2022. "Corporate Social Responsibility in Terms of Sustainable Development: Financial Risk Management Implications," Risks, MDPI, vol. 10(11), pages 1-24, October.
    • Handle: RePEc:gam:jrisks:v:10:y:2022:i:11:p:206-:d:958876
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    References listed on IDEAS

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    1. Alexey S. Kharlanov & Yuliya V. Bazhdanova & Teimuraz A. Kemkhashvili & Natalia G. Sapozhnikova, 2022. "The Case Experience of Integrating the SDGs into Corporate Strategies for Financial Risk Management Based on Social Responsibility (with the Example of Russian TNCs)," Risks, MDPI, vol. 10(1), pages 1-19, January.
    2. Vladimir S. Osipov & Yuriy A. Krupnov & Galina N. Semenova & Maria V. Tkacheva, 2022. "Ecologically Responsible Entrepreneurship and Its Contribution to the Green Economy’s Sustainable Development: Financial Risk Management Prospects," Risks, MDPI, vol. 10(2), pages 1-19, February.
    3. Abdelkader Derbali & Lamia Jamel, 2019. "Dependence of Default Probability and Recovery Rate in Structural Credit Risk Models: Case of Greek Banks," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 711-733, June.
    4. Klaus Kotek & Alina M. Schoenberg & Christopher Schwand, 2018. "CSR Behavior: Between Altruism and Profit Maximization," CSR, Sustainability, Ethics & Governance, in: Reinhard Altenburger (ed.), Innovation Management and Corporate Social Responsibility, pages 159-169, Springer.
    5. Mohamed Marouen Amiri & Kamel Naoui & Abdelkader Derbali & Mounir Ben Sassi, 2020. "Investor sentiment and the risk-return tradeoff," International Journal of Financial Engineering (IJFE), World Scientific Publishing Co. Pte. Ltd., vol. 7(04), pages 1-20, December.
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    Cited by:

    1. Yana Us & Tetyana Pimonenko & Oleksii Lyulyov, 2023. "Corporate Social Responsibility and Renewable Energy Development for the Green Brand within SDGs: A Meta-Analytic Review," Energies, MDPI, vol. 16(5), pages 1-18, February.
    2. Meri K. Dzhikiya & Veronika V. Yankovskaya & Lyudmila M. Kuprianova & Natalia G. Sapozhnikova & Maria V. Tkacheva, 2024. "Sustainable HRM in the SAP-LAP Model: Flexible Organizational Systems Based on Change Management," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 25(1), pages 1-15, September.

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