The Role of Financial Management in Promoting Sustainable Business Practices and Development

Abstract

The number of organizations that embrace societal expectations as part of their business strategies is on the rise. Increasing reliance on sustainable issues by a business is critical to the growing interconnectedness and future value of a business. This study aimed at exploring the role of financial management in promoting sustainable business practices and development. Based on thematic analysis of resources from varied scholars, it confirms that appropriate financial management models are necessary to enhance productivity while mitigating issues of financial risks. The findings also indicated that allocating capital budgeting for sustainable issues enhances the competitive advantage of the business, and utilization of western and the Islamic financial are efficient sustainability measures. The study concludes that financial management plays a vital role in promoting sustainable business practices and development.

Keywords: Sustainable Business Practices