First author: AGÂRBICEANU Simona Marcela (
Affiliation: Lucian Blaga University of Sibiu
Second author: PĂUN Tatiana (
Affiliation: University of Craiova, Romania, Faculty of Economics and Business Administration


Under current global conditions, finance may play a critical role in allocating investment to sustainable enterprises and projects, thereby hastening the transition to a low-carbon circular economy. Finance promotes risk assessment and, as a result, can aid in addressing the inherent ambiguity surrounding environmental concerns such as the impact of carbon emissions on climate change. In recent decades, thinking about sustainable finance has progressed through several stages, with the emphasis steadily changing from short-term profit to long-term value creation. This study seeks to conduct an examination of the concept and premises of sustainable corporate finance based on literature research, with the goal of bringing arguments to the need to shift the financial paradigm. This emerging perspective emphasizes that, while profit creation and maximization are important, firms must also seek other goals that have an impact on society, such as those connected to sustainable development. The integration of environmental, social, and governance components into financial decision-making processes is referred to as sustainable finance. Recent developments highlight the importance of businesses’ commitment to responsible behavior in transforming the company into a truly sustainable enterprise that adds value to the business, society, and the environment

Keywords: sustainability, sustainable corporate finance

Pages: 33 - 38
Volume: 13
Issue: 1
Publication date: June, 2021

AGÂRBICEANU Simona Marcela & PĂUN Tatiana, 2021. "THE NEED FOR A PARADIGM SHIFT IN FINANCE: SUSTAINABLE CORPORATE FINANCE", Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 13(1), pages 33-38, June. DOI: