Management of social responsibility strategies of multinational corporations in russia during the war against Ukraine
This study examined how multinational corporations adapted their corporate social responsibility strategies while operating in russia during the ongoing war against Ukraine. Specifically, the analysis investigated the impact of different corporate social responsibility approaches on financial perfor...
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| Format: | Article |
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LLC "CPC "Business Perspectives"
2024-10-01
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| Series: | Problems and Perspectives in Management |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20910/PPM_2024_04_Kharchenko.pdf |
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| author | Tetyana Kharchenko Inna Sokhan Volodymyr Shalimov Nataliia Baistriuchenko Nataliia Klietsova |
| author_facet | Tetyana Kharchenko Inna Sokhan Volodymyr Shalimov Nataliia Baistriuchenko Nataliia Klietsova |
| author_sort | Tetyana Kharchenko |
| collection | DOAJ |
| description | This study examined how multinational corporations adapted their corporate social responsibility strategies while operating in russia during the ongoing war against Ukraine. Specifically, the analysis investigated the impact of different corporate social responsibility approaches on financial performance, stakeholder trust, and corporate reputation for multinational corporations operating in russia during the war. A game-theoretic model evaluated three distinct strategies: minimal corporate social responsibility engagement (Strategy 1), increased corporate social responsibility involvement (Strategy 2), and a complete exit from the russian market (Strategy 3). The quantitative analysis showed that companies choosing the exit strategy (Strategy 3) gained the highest payoffs for financial performance, stakeholder trust, and reputation. In contrast, minimal corporate social responsibility engagement (Strategy 1) resulted in negative outcomes, including reputational damage and potential exposure to sanctions. On the other hand, increased corporate social responsibility involvement (Strategy 2) produced neutral outcomes, offering short-term benefits but still leaving companies vulnerable to ongoing risks. The sensitivity analysis confirmed the stability of these outcomes. The study concludes that exiting the russian market not only aligns with ethical standards but also ensures long-term sustainability, offering critical insights for corporations navigating corporate social responsibility challenges in war zones.
AcknowledgmentsWe sincerely express our gratitude to Prof. Dr. Dr. h.c. Marko Sarstedt, the LMU Fellowship Grant (LMU Ukraine support-fund) for the support of Ukrainian scientists. |
| format | Article |
| id | doaj-art-2fd51b64b7e746a88146c3c4c9b4cecc |
| institution | OA Journals |
| issn | 1727-7051 1810-5467 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj-art-2fd51b64b7e746a88146c3c4c9b4cecc2025-08-20T02:13:31ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672024-10-012249510710.21511/ppm.22(4).2024.0820910Management of social responsibility strategies of multinational corporations in russia during the war against UkraineTetyana Kharchenko0https://orcid.org/0000-0001-8967-4711Inna Sokhan1https://orcid.org/0000-0002-8038-8484Volodymyr Shalimov2https://orcid.org/0000-0001-9462-8277Nataliia Baistriuchenko3https://orcid.org/0000-0001-8229-0555Nataliia Klietsova4https://orcid.org/0000-0003-4910-8912Ph.D. in Economics, Associate Professor, Department of Management named after Professor Mykhailova L.I., Sumy National Agrarian University, UkraineDoctor of Economics, Professor, Management Department named after Professor L. Mykhailova, Sumy National Agrarian UniversityPh.D. in Economics, Associate Professor, Department of Economic and Legal Disciplines and Economic Security, Donetsk State University of Internal Affairs, UkrainePh.D. in Economics, Associate Professor, Specialist at the LLC “FTD-Retail”, UkrainePh.D. in Economics, Associate Professor, International Relations Department, Sumy National Agrarian University, Ukraine; Professor, HR Business School, University of Hertfordshire, United KingdomThis study examined how multinational corporations adapted their corporate social responsibility strategies while operating in russia during the ongoing war against Ukraine. Specifically, the analysis investigated the impact of different corporate social responsibility approaches on financial performance, stakeholder trust, and corporate reputation for multinational corporations operating in russia during the war. A game-theoretic model evaluated three distinct strategies: minimal corporate social responsibility engagement (Strategy 1), increased corporate social responsibility involvement (Strategy 2), and a complete exit from the russian market (Strategy 3). The quantitative analysis showed that companies choosing the exit strategy (Strategy 3) gained the highest payoffs for financial performance, stakeholder trust, and reputation. In contrast, minimal corporate social responsibility engagement (Strategy 1) resulted in negative outcomes, including reputational damage and potential exposure to sanctions. On the other hand, increased corporate social responsibility involvement (Strategy 2) produced neutral outcomes, offering short-term benefits but still leaving companies vulnerable to ongoing risks. The sensitivity analysis confirmed the stability of these outcomes. The study concludes that exiting the russian market not only aligns with ethical standards but also ensures long-term sustainability, offering critical insights for corporations navigating corporate social responsibility challenges in war zones. AcknowledgmentsWe sincerely express our gratitude to Prof. Dr. Dr. h.c. Marko Sarstedt, the LMU Fellowship Grant (LMU Ukraine support-fund) for the support of Ukrainian scientists.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20910/PPM_2024_04_Kharchenko.pdfcorporate reputationcorporate social responsibility strategiesfinancial performancemultinational corporationsreputational riskstakeholder trust |
| spellingShingle | Tetyana Kharchenko Inna Sokhan Volodymyr Shalimov Nataliia Baistriuchenko Nataliia Klietsova Management of social responsibility strategies of multinational corporations in russia during the war against Ukraine Problems and Perspectives in Management corporate reputation corporate social responsibility strategies financial performance multinational corporations reputational risk stakeholder trust |
| title | Management of social responsibility strategies of multinational corporations in russia during the war against Ukraine |
| title_full | Management of social responsibility strategies of multinational corporations in russia during the war against Ukraine |
| title_fullStr | Management of social responsibility strategies of multinational corporations in russia during the war against Ukraine |
| title_full_unstemmed | Management of social responsibility strategies of multinational corporations in russia during the war against Ukraine |
| title_short | Management of social responsibility strategies of multinational corporations in russia during the war against Ukraine |
| title_sort | management of social responsibility strategies of multinational corporations in russia during the war against ukraine |
| topic | corporate reputation corporate social responsibility strategies financial performance multinational corporations reputational risk stakeholder trust |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20910/PPM_2024_04_Kharchenko.pdf |
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