Management of social responsibility strategies of multinational corporations in russia during the war against Ukraine

  • 143 Views
  • 24 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

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.

Acknowledgments
We 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.

view full abstract hide full abstract
    • Table 1. Strategy and stakeholder payoff
    • Table 2. Methodological steps involved in the game theoretical analysis
    • Table 3. Payoffs for the multinational corporation and stakeholders across the three strategies
    • Table 4. Payoff matrix for multinational corporations under sanctions
    • Table 5. Payoff matrix outcomes for both the multinational corporations and stakeholder
    • Table 6. Sensitivity analysis
    • Conceptualization
      Tetyana Kharchenko, Inna Sokhan, Volodymyr Shalimov, Nataliia Baistriuchenko
    • Project administration
      Tetyana Kharchenko
    • Writing – original draft
      Tetyana Kharchenko, Inna Sokhan, Volodymyr Shalimov, Nataliia Baistriuchenko
    • Writing – review & editing
      Tetyana Kharchenko, Volodymyr Shalimov, Nataliia Klietsova
    • Formal Analysis
      Inna Sokhan
    • Methodology
      Inna Sokhan
    • Data curation
      Volodymyr Shalimov
    • Funding acquisition
      Nataliia Baistriuchenko
    • Software
      Nataliia Baistriuchenko
    • Investigation
      Nataliia Klietsova
    • Resources
      Nataliia Klietsova