Sustainable financial management and corporate social responsibility: strategies for balancing profitability and ethical business practices
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The study formulates a conceptual model that harmonises ethical responsibility and financial management into one model of sustainable corporate governance. This research seeks to account for how profitability, ethics, and governance mutually interact to produce long-term fiscal stability and organisational legitimacy. A conceptual and theoretical research study design was employed by relying on the well-established theory of stakeholder, legitimacy, and agency theories. The study integrates both literature available and data simulations to construct and experiment the Sustainable Financial-Responsibility Integration Framework. Postulations of analytical modelling and theoretical blending were used to show how the participation of ethical investment and transparent governance would result into financial performance. The research results depict that the increase in profitability increases gradually as the ethical compliance and responsible investment improve. The major causal factors of long-term organisational success were stakeholder accountability, ethical governance and financial sustainability. The model of moral responsibility proved that financial performance is strengthened, rather than restrained, by moral responsibility which was validated by the virtual relationships. The model puts in place a strategic path in the organisations to incorporate ethical values in financial decision making. It concentrates on transparent reporting, investing in ethical manner and integrity in governing as a way of achieving long term profitability and confidence of the stakeholders. The study comes to the conclusion that sustainability profitability is achieved when financial objectives align themselves to ethical governance. Moral responsibility in the financial sector makes organisations more resilient, legitimate, and generate long-term value and positively influence the society and the welfare of stakeholders.
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