The Role of Financial Management in Corporate Sustainability: An Empirical Review

Abstract

This study examines the role of financial management in corporate sustainability, aiming to provide an empirical review of how effective financial practices contribute to long-term organizational sustainability. The primary objective is to qualitatively analyze existing literature to understand the interplay between financial management strategies and corporate sustainability outcomes. The research employs a qualitative literature review methodology, synthesizing findings from academic articles, empirical studies, industry reports, and case studies to offer a comprehensive overview of the current state of knowledge in this area.

The literature review methodology involves systematically identifying, collecting, and analyzing scholarly sources that discuss various aspects of financial management and corporate sustainability. The study categorizes the literature into key themes, such as the impact of financial planning and control, investment strategies, risk management, and corporate governance on sustainability. The thematic analysis identifies patterns and trends in how these financial practices influence sustainability metrics, such as environmental performance, social responsibility, and economic resilience.

The findings indicate that robust financial management practices are integral to achieving corporate sustainability. Effective financial planning and control help organizations allocate resources efficiently, reduce waste, and invest in sustainable projects. Sound investment strategies, including those focused on green and socially responsible investments, are shown to enhance corporate sustainability profiles. Additionally, comprehensive risk management practices mitigate financial risks associated with environmental and social factors, while strong corporate governance frameworks ensure accountability and transparency in sustainability efforts.