The dividend policy of a company as an instrument of the long-term sustainability and a measure of the corporate responsibility

Abstract

Current crisis caused by a lockdown puts many challenges on every corporation. In a situation of an unprecedently low demand in many spheres of business it is essential for companies to stay sustainable. Another key trend of the year 2020 is social unrest. Customers and partners expect companies to follow generally accepted companies responsibility principles. For companies one of the key instruments that can address both these issues is its dividend policy. This article describes how the leading Russian private O&G company Lukoil uses its new dividend policy to overcome the challenges.