The Case Experience of Integrating the SDGs into Corporate Strategies for Financial Risk Management Based on Social Responsibility (with the Example of Russian TNCs)

Alexey S. Kharlanov, Yuliya V. Bazhdanova, Teimuraz A. Kemkhashvili and Natalia G. Sapozhnikova
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Alexey S. Kharlanov: World Economics, Diplomatic Academy of the Ministry of Foreign Affairs of the Russian Federation, 119034 Moscow, Russia
Yuliya V. Bazhdanova: Psychology, Plekhanov Russian University of Economics, 115093 Moscow, Russia
Teimuraz A. Kemkhashvili: Innovative Business, Bauman Moscow State Technical University, 105005 Moscow, Russia
Natalia G. Sapozhnikova: Economic Security and Accounting, Voronezh State University, 394036 Voronezh, Russia

Risks, 2022, vol. 10, issue 1, 1-19

Abstract: The motivation of this research consists in the following: the traditional commercial approach to financial risk management amid economic crises implies the reduction of corporate social responsibility, based on the assumption that this responsibility raises the financial risk of business. Due to this, the contribution of business to the achievement of the SDGs is not stable and is often negative, since practices of business management contradict the SDGs in crisis periods and hinder their achievement in society and the economy. However, the refusal from corporate social responsibility during a crisis does not guarantee the following increase in the level of business development in the period of stability. A study of the case experience of integrating the SDGs into corporate strategies of the largest Russian companies during the COVID-19 crisis improved the understanding of the contribution of corporate social responsibility to financial risk management of the business. Dynamic modelling showed that, in a crisis period, corporate social responsibility leads to a reduction of the financial risks of business—it is commercially profitable, similarly to the phase of stability, and critically important. Based on this, an alternative (new) approach to financial risk management is developed, which allows raising the effectiveness of this management amid economic crises (including the COVID-19 crisis) through the integration of the SDGs into corporate strategies and the manifestation of high social responsibility during crises.

Keywords: case study; Russian TNCs; SDGs; corporate strategies; financial risk management; social responsibility; COVID-19 crisis (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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