How Current Geopolitics Affects the Disclosure of Non-Financial Information by Russian Companies

Non-financial reporting now occupies a place alongside financial reporting itself as one of the most important documentary sources of information available to a wide range of stakeholders such as investors, clients, and community organizations. They can utilize information from non-financial reports to make business decisions based not only on financial and economic criteria of effectiveness but also on evaluations of sustainability and corporate responsibility. This article analyzes the way non-financial information was disclosed by Russian companies in 2023 especially in relation to current geopolitical circumstances. The study involved a thorough examination of the non-financial reports of nineteen Russian companies in which they highlighted their social initiatives, such as humanitarian assistance to participants in the special military operation, support for civilians affected by military actions, swift introduction of import substitution programs, and other measures that address contemporary challenges and societal concerns. A comparison was also made with the non-financial reports of the same companies for 2020, a year in which the public focus was on ameliorating the COVID-19 pandemic and limiting its repercussions. The results indicate that there has been a significant qualitative improvement in non-financial reporting for 2023 compared to 2020. The scope of that progress underscores persistent deficiencies in Russia’s national institutional environment and demonstrates an urgent need for developing methodological approaches and regulatory mechanisms within the national business reporting system. Such improvements are crucial for enhancing the transparency and accuracy of non-financial disclosure in order to ensure that it addresses societal demands and expectations.