THE ROLE OF ESG MANAGEMENT IN THE ENTERPRISE DEVELOPMENT STRATEGY

Abstract

The article examines the role of ESG management in enterprises in modern conditions. One of the main conclusions of the work is the undeniable fact that the ESG management concept, which is fundamentally focused on meeting the needs of the state and enterprises in implementing the principles of sustainable development, also has great potential in managing various areas of business strategies, such as regulating the company’s risk policy, determining an environmentally friendly approach in production processes, and also, the management of the behavior of the final consumer. However, the concepts of sustainable development are still the fundamental basis for the formation of the competitiveness of enterprises. Thus, the article is aimed at a broad study of the aspects of ESG management. The author of the article examines the concept of sustainable development and its importance for the preservation of the environment and social well-being from the position of the founder of the development of ESG methods, which were originally used as a criterion for investors. In this paper, the author explains the need to integrate the ESG approach into the management of an organization. The author emphasizes that in the modern world, consumers, investors, and stakeholders are aware of the importance of sustainability and social responsibility of business. Organizations that successfully implement and integrate ESG practices into their business have a competitive advantage in the market and better prospects for development. The present study is also aimed at examining individual departments and structures of companies that are most adapted to integrate ESG concepts into them. In the context of digitalization, the IT department, as well as the service directly involved in personnel policy, is of particular importance. Special attention is paid to the field of marketing, which in modern conditions can also be adapted to ESG concepts. The key conclusion of the work is to state the extensive capabilities of the ESG concept, which allows them to be implemented not only in the risk management policy, as it was originally developed, but also in the field of financial management, personnel, technology, and other processes that are an integral part of the sustainable development of each enterprise.

Keywords: business management, business strategies, development trends, sustainable business development, ESG management

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About the Author

Maxim K. Izmaylov – Cand. Sci. (Economics); Associate Professor, Peter the Great         St. Petersburg Polytechnic University, Saint Petersburg, Russia. E-mail: izmajlov_mk@spbstu.ru. SPIN РИНЦ 7654-8818. ORCID 0000-0002-3147-9603. Researcher ID AAO-3701-2021. Scopus Author ID 57208470615

For citation: Izmaylov M.K. The Role of ESG Management in the Enterprise Development Strategy // Beneficium. 2024.          Vol. 1(50). Pp. 47-53. (In Russ.). DOI: 10.34680/BENEFICIUM.2024.1(50).47-53