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Mariana Bravo Sepúlveda, Jorge Andrés Polanco, Felipe Isaza Cuervo
ESTIMATING THE INCIDENCE OF OPERATIONAL RISKS ON CORPORATE SUSTAINABILITY IN THE CEMENT INDUSTRY THROUGH FINANCIAL SIMULATION
Abstract:
This study estimates the impact of operational risks on corporate sustainability in the cement industry through a financial simulation. The methodology is based on a case study in the cement industry and identifies company’s operational risks before classifying them through a taxonomy of environmental, social and economic variables. The impact is quantified using a stochastic model with a Poisson distribution for frequency and a PERT distribution for severity. The results show that it is possible to quantify aggregate losses through the proposed probability distributions, eliminating the limitations faced by companies in the absence of historical information, and it is concluded that the average impact of these risks on FCF varies between 7.52% and 13.13% for the case study, also demonstrating that the impact is reduced when risks are proactively managed. Finally, the proposed model allows calculation and simulation of the financial impact of these risks on the company’s free cash flow and establishes strategies for cost mitigation and financial optimization. This research has two limitations: the validation in a single industry and the limitation of using solver for optimization.
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Silviu Miloiu, Atanas Atanasov, Galina Chipriyanova, Radosveta Krysteva Hristova
THE GREEN AND SOCIALLY RESPONSIBLE BUSINESS IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT
Abstract:
The green and socially responsible business, in the context of environment and resource protection, improving the quality of life for workers and employees at the corporate level and of the society as a whole, and oriented towards sustainable economic development, finds expression in the full integration of economic, environmental and social commitments of companies in the course of their business activities, in their interactions with the environment, and in their relationships with personnel, contractors and society. The thesis defended is that environmental protection and the implementation of socially responsible practices by companies can be successfully achieved with an effective management system that is tailored to the specific nature of the business and the best practices in the field, and with the support of an environmentally and socially responsible leader. The results of the study find an expression in revealing the process of transformation: "traditional business model - green and socially responsible business", highlighting the importance of turning companies into green and socially significant organizations with a good reputation.
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Badri Gechbaia, Ketevan Goletiani, Giorgi Abashidze, Zurab Nasaraia
THE ROLE OF HUMAN RESOURCES MANAGEMENT IN ACHIEVING SUSTAINABLE DEVELOPMENT GOALS IN THE COMPANY
Abstract:
In today’s business world Human Resources Management (HRM) has expanded beyond its role. Now it plays a crucial part in guiding companies towards achieving Sustainable Development Goals (SDGs). This analysis explores the connection between HRM practices and the pursuit of objectives within organizations. HRM serves as a pillar in fostering a corporate culture where social responsibility and environmental awareness seamlessly integrate into everyday operations. By aligning HRM strategies with SDGs companies can effectively utilize their resources to make contributions to society and the environment. A key element in this collaboration is employee engagement. Committed and motivated staff members actively contribute to achieving sustainability targets. HRM practices that prioritize skill development, diversity and inclusion and employee well-being not improve performance but also lay the foundation for a socially responsible workforce. Through training programs HRM ensures that employees have the knowledge and skills to address sustainability challenges promoting a culture of continuous learning and innovation. Additionally, strategic HRM plays a role in integrating sustainability considerations throughout an employee’s journey within the organization. From recruitment processes that emphasize alignment with company values to performance evaluations incorporating sustainability metrics HRM guides employee behavior and attitudes towards practices. The integration of HRM, with SDGs extends beyond boundaries. Human resource management (HRM) experts are playing a growing role, in fostering supply chains guaranteeing sourcing methods and working together with external partners to enhance the company’s positive influence, on the broader community. In addition, HRM becomes a driver of collective action towards shared sustainability goals through partnerships with educational institutions, NGOs and industry peers. As such, this implies that there exists possible trans formative power within human capital embedded in how these two concepts interact with each other. This means that HRM as a functional requirement but also a strategic enabler for sustainable development is not just part of it but also a significant factor for any company operating in this era of raised environmental and social consciousness. Considering the given factors, the objective of this article is to explore the role of Human Resource Management (HRM) in aligning organizational practices with Sustainable Development Goals (SDGs) and to identify specific HRM strategies that foster sustainable growth within companies.
