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Sustainability And Insolvency: Opposing Forces Or Strategic Allies? A Systematic Literature Review

Author

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  • Irina-Denisa Simion

    (Alexandru Ioan Cuza University of Iasi)

Abstract

Insolvency represents one of the most significant contemporary economic challenges, with major implications for both society as a whole and the business environment. It affects not only the financially distressed company but also employees, creditors, suppliers, and other stakeholders involved in the enterprise's operations. In the context of a global economic climate marked by instability and rapid change, sustainability has become a priority for the business sector, offering long-term development perspectives and the potential to mitigate risks to which a company may be exposed. Sustainable practices, when integrated into corporate strategies, no longer constitute merely ethical choices, but may serve as mechanisms for preventing insolvency risk and ensuring business continuity. Based on these premises, the present study aims to answer the following research question: What are the main trends identified in the academic literature regarding the relationship between the adoption of sustainability initiatives and the insolvency of companies? . From a methodological standpoint, a systematic literature review (SLR) will be conducted, integrating both quantitative and qualitative approaches. Relevant publications from the fields of accounting, taxation, and management will be examined, using the Scopus, Web of Science and Google Scholar databases for the period 2014 2024. Based on welldefined keywords and selection criteria, significant studies related to the research topic will be identified. Preliminary findings suggest that the relationship between the two concepts can be analysed from two perspectives: the first highlights that integrating sustainability objectives into a company s strategy may reduce the risk of insolvency; the second considers the possibility of adopting such objectives within insolvency proceedings to avoid bankruptcy. The limitations of this study are related to the databases used and the subjectivity of the selection process (criteria, keywords, interpretation of article relevance). The originality of this research lies in its systematic approach to the literature concerning the relationship between sustainability and insolvency, as well as in the methods employed to highlight this connection.

Suggested Citation

  • Irina-Denisa Simion, 2025. "Sustainability And Insolvency: Opposing Forces Or Strategic Allies? A Systematic Literature Review," EUFIRE Conference Proceedings Series, Alexandru Ioan Cuza University Publisher, vol. 1(1), pages 366-385, October.
    • Handle: RePEc:cxa:eu2025:v:1:y:2025:i:1:p:366-385
    DOI: 10.47743/eufire-2025-1-29
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    References listed on IDEAS

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    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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