Corporate Social Responsibility as an Alternative Approach to Financial Risk Management: Advantages for Sustainable Development

Abstract

Using the example of the COVID-19 global crisis (2020), we prove the low effectiveness of the existing approach to managing the financial risks of investments based on commercial investments. For this, we performed an applied quantitative study based on the statistics from the World Bank for 2020 and the Forbes Global 2000 ranking in 2021, using as an example 17 developing countries with lower-middle and upper-middle incomes from different regions of the world. As an alternative, we suggest a new approach for managing the financial risks of investments, which is based on corporate social responsibility. It implies the placement of long-term, large-scale investments in social and ecological innovations based on the mechanism of public-private partnership. We substantiated the high effectiveness and advantages of the new approach. The new approach to financial risk management amid a crisis was more effective (in comparison with the existing approach) for businesses (ensures higher return on investments, allows avoiding losses), the government (contributes more to economic growth, the probability of which achievement is higher), and for society (supports SDGs to a larger extent and contributes to sustainable development). This paper contributes to the development of the Theory of Investments (Neo-Keynesianism) and fills a gap in the literature, bridging the gap between the Theory of Investments and the Theory of Sustainable Development—outlining the perspectives of the simultaneous overcoming of economic crises and supporting sustainable development during the management of financial investment risks based on corporate social responsibility.

Implementasi Tanggung Jawab Sosial Dalam Meningkatkan Perekonomian Masyarakat Pada Bank Mandiri Kota Gunungsitoli

“…Kesadaran terkait pentingnya mempraktikkan CSR inilah yang menjadi trend global masa kini yang terus iringi dengan maraknya tingkat keperdulian yang memberikan sejumlah keuntungan kepada lingkungan (Yankovskaya et al, 2022). Keberadaan CSR berkaitan dengan pembangunan berkelanjutan, yang mana terdapat argumentasi bahwa perusahaan dalam menjalankan kegiatannya harus merujuk pada keputusan yang tidak hanya fokus pada faktor finansial saja, yang mana harus merujuk pada konsekuensi secara sosial dengan ekonomi baik untuk masa kini dan waktu mendatang.…”

A call to action: Unpacking the challenges to implementing social sustainability initiatives in a developing country city

“…Thus, sustainable development is well-known as a Theory of Sustainable Development or Sustainability Theory. The Theory of Sustainable Development argues that economic, environmental, and social dimensions must be equally focused to ensure sustainability [ [25] , [26] , [27] , [28] , [29] , [30] , [31] ].…”

Methodology for assessing information disclosure on stakeholder risks in non-financial reporting of oil and gas companies

“…Многие российские ученые -С. Д. Бодрунов [4], С. Н. Бобылев [5], В.В. Янковская [6], А. А. Макаров [7] -рассматривают привлечение инвестиций как одну из главных доминант устойчивого развития российской экономики, указывая, что «на инвестиционную привлекательность бизнеса будет оказывать влияние, прежде всего, развернутое раскрытие информации о рисках корпоративного воздействия на окружающую среду» в публичных нефинансовых отчетах компаний. Вопросам повышения качества публичной нефинансовой отчетности компаний в различных секторах экономики, оценки влияния ESG-информации на репутацию и рыночную стоимость бизнеса, сбалансированности раскрытия интересов различных групп стейкхолдеров посвящены исследования М. А. Федотовой, О. В. Лосевой, В. В. Богатыревой [7], Е. А. Федоровой [8], Е. Ю. Макеевой, И. В. Ивашковской, Л. С. Ружанской, К. А. Попова [9], Тенси Уилан, Элиз Дуглас 8 , О. В. Ефимовой, М. А. Волкова, Д. А. Королевой [10].…”

“…ru/document/1/e/0/e03632d895731fcd79e2b7d02aa28c37.pdf (дата обращения: 15.06.2022). 6 Список компаний нефтегазового сектора группы 1. URL: https://vnr500.com.vn/Nganh-nghe/Tham-do-khai-thac-daumo-va-hoat-dong-ho-tro-Post/21.html (дата обращения: 20.08.2022).…”