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Corporate Investments in Conflict-Prone Regions: Managerial Approaches for Conflict Prevention

Considering the incentives for multinational companies to invest in conflict prone areas, the paper discusses the decision making process when it comes to enterprises’ foreign investment and operational management of the companies’ units after these are being set up in the respective regions. The research focuses on what companies understand of sustainable management when operating in conflict prone environments and on the enterprises’ specific approaches in conflict prevention strategies. The first part of the article summarizes the primary factors considered by companies investing in conflict prone zones prior to investment in those areas and the specificities of risk assessment plans developed by the companies considering those factors. The second part of the article studies the general aspects of sustainable decision making for enterprises operating in conflict countries while the last part of the paper refers to the corporate conflict prevention as a particular aspect of sustainable management in countries and regions affected by conflicts. Both the theoretical and practical aspects are being discussed considering experiences that corporations have had in such areas. The conclusions aim at identifying the way companies apply sustainable management in operations developed in conflict prone areas and underline the future areas of research that would help better define management systems that corporations may implement in such regions.