Financial Risk Management for Sustainable Agricultural Development Based on Corporate Social Responsibility in the Interests of Food Security

Andrey A Polukhin,Veronika I Panarina

doi:10.3390/risks10010017

Andrey A Polukhin, Veronika I Panarina

Open Access

https://doi.org/10.3390/risks10010017

Copy DOI

Abstract

This paper focuses on the problem of the high financial risks of agricultural entrepreneurship, which hinder the sustainable development of agriculture and do not provide food security. This problem is especially topical in the conditions of the COVID-19 crisis when financial risks are urgent. The research basis is the theory of financial risks of entrepreneurship. This paper’s RQ is as follows: how should financial risks for the sustainable development of agriculture be managed for the provision of food security? The purpose of this paper is to find ways of managing the financial risks of agricultural entrepreneurship based on its corporate social responsibility for sustainable development and the provision of food security. The contribution to the literature is that the authors offer a solution to the problem of the financial risks of agricultural entrepreneurship. The originality of this paper is that the solution is corporate social responsibility. The universal character of the paper is due to the description of the international experience of corporate social responsibility and proving the contribution of this responsibility for the sustainable development of agriculture and food security as well as its demonstration—based on the case experience of modern Russia of specific, effective, and perspective practices of corporate social responsibility that make a significant contribution to the sustainable development of agriculture and food security. The results are very important for decision making in managing the financial risks of agricultural entrepreneurship.

Highlights

IntroductionIn the context of the COVID-19 pandemic and crisis, as well as under the influence of the global growth in demand for food, the problem of sustainable agricultural development has become highly relevant (Kang et al 2021; Molitor et al 2021)
The purpose of this paper is to find ways of managing the financial risks of agricultural entrepreneurship based on its corporate social responsibility for sustainable development and the provision of food security
Based on the foregoing, this article aims to determine the prospects of financial risk management for sustainable agricultural development based on corporate social responsibility in the interests of food security

Summary

Introduction

In the context of the COVID-19 pandemic and crisis, as well as under the influence of the global growth in demand for food, the problem of sustainable agricultural development has become highly relevant (Kang et al 2021; Molitor et al 2021). The solution to this problem presupposes highly effective financial risk management, which largely determines the sustainability of agricultural development. Among these risks is a change in average food costs, which reduces the effective demand for agricultural products. Financial risks include a decrease in agricultural import tariffs, leading to increased competition in agricultural markets

Objectives

Methods

Results

Conclusion