Risk Management and Sustainable Development of Telecommunications Companies

Abstract

Globalisation determines a continuous increase of risks for companies. Hence, the ability to prevent threats and catch opportunities becomes strategically relevant for corporate success. However, different approaches of risk management can be chosen by firms operating in a same industry. This article is focused on telecommunications companies in a globalised economy: indeed, such companies contribute to market globalisation by facilitating information transmission and knowledge sharing, but they are also exposed to a variety of risks determined by legislative limitations to their activities, and risks related to social and environmental impacts of their processes. Therefore, the paper reflects on the sustainability of telecommunications companies’ development, which depends, in our opinion, on the ability to manage risks in a globally responsible way. The research comprises an empirical investigation based on the top 5 European telecommunications firms, the risks of which are classified in homogeneous categories and associated to different types of corporate global responsibility: legal, administrative, economic, social and environmental responsibility.