APPLICATION OF ESG PRINCIPLES AS A WAY TO INCREASE COMPETITIVENESS IN THE MANAGEMENT OF INDUSTRIAL ENTERPRISES
Keywords:
Enterprises, ESG principles, Industrial enterprises, corporate social responsibility, corporation, influence, investments, transformation, reputation, status, climate, funds, sponsor, society, management, environment.Abstract
The article reveals the demonstration of the transition from corporate social
responsibility to ESG - the principles of doing business that allow for establishing connections
between companies and the financial market to accumulate climate finance necessary for
combating climate change and creating conditions for sustainable development. By applying this
transition, organizations show investors and creditors how attractive they are.
The need for transition and transformation in the field of environmental security allows for
the creation of comfortable conditions for citizens in society. Due to this concept, the requirements
for organization in the legislative framework are being tightened. However, companies that follow
ESG principles in their work gain advantages - attractiveness for investment, which is not
insignificant in a competitive environment.
Sponsors focus on how the organization relates to nature, personnel, and consumers from
an ethical perspective, which contributes to increasing the organization's attractiveness for
investment and its prosperity: productivity increases, capital expenditures decrease, and risks in
organizations operating in accordance with ESG principles. Infrastructure is being developed in
organizations, technologies are being implemented that allow for the use of renewable energy and
reduce carbon dioxide emissions into the atmosphere. Companies that follow ESG rules are
financially most stable, and their reputation and status are growing.
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