UDC 658.5:338.2; JEL M14, M21, G32, O30, Q56
Lahodiyenko, O. V. (2024). Doslidzhennya intehratsiyi ESG-faktoriv u korporatyvnu stratehiyu pidpryyemstva [Research on the integration of ESG factors into the corporate strategy of the enterprise]. Rehional'na ekonomika - Regional Economy, 113 (3), 117-123. DOI: https://doi.org/10.36818/1562-0905-2024-3-10 [in Ukrainian].
Sources: 10

Authors



Lahodiyenko Oleh Viktorovych

Ph.D. of Economics

Doctoral Postgraduate of the Department of digital technologies of financial operations of the Academic Institute of Economics, Management and Business named after G.E. Weinstein of the Odesa National Academy of Food Technologies

Contacts: oleg@ethicontrol.com

Webpages:

Resume

This article is dedicated to integrating ESG factors into enterprises’ corporate strategies. The study aims to systematize and summarize existing approaches to developing corporate strategies and develop theoretical and methodological foundations for integrating ESG factors into corporate strategies. In particular, the article examines the evolution of the corporate strategy concept as a critical management tool that determines the long-term development directions of a company. The research is presented in the context of modern approaches to strategic management, which have undergone significant changes due to the dynamics of the external environment, globalization of the economy, and increasing competition. It reveals that the evolution of views on corporate strategy from classical to modern concepts requires continuous improvement of strategic management tools. The study substantiates the importance of integrating various approaches to developing corporate strategies to ensure sustainability and competitive advantages in a changing business environment. The study showed that modern companies are increasingly recognizing the importance of ESG (Environmental, Social, and Governance) factors for ensuring the long-term sustainability of their businesses. It found that 85% of companies consider the implementation of ESG a means of meeting regulatory requirements and an essential element in creating long-term value. The study also identified that 71% of senior executives expect the importance of ESG for corporate activities to grow, emphasizing the need to adapt financial models to new requirements. Additionally, the article outlines changes in corporate strategies under the influence of ESG, such as developing environmentally sustainable practices, improving working conditions, and increasing management transparency. The research substantiates that companies integrating ESG into their strategies increase their chances of long-term success, enhance their reputation, and contribute to sustainable development. Engaging stakeholders in decision-making allows companies to meet expectations better and form long-term partnerships. It was found that integrating ESG also enables businesses to adapt to rapidly changing market conditions, enhancing their competitiveness and sustainability in the long term.

Keywords:

corporate strategy, ESG factors, strategic management, adaptive approach, competitive advantages

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