Sustainable Social Development, Journal Year: 2024, Volume and Issue: 2(2)
Published: April 30, 2024
People's expectations for businesses' social responsibility are rising as environmental and issues gaining more concerns worldwide.Furthermore, many big businesses need to take ESG (Environmental, Social, Governance) factors into account when making decisions due the growing trend of influence investing [1].What is ESG?What's advantage ESG? What's relationship between sustainable development?These questions will be answered in this article.ESG a set criteria used evaluate environmental, social, governance corporates [2].In particular, "Environmental" encompasses like greenhouse gas emissions, energy efficiency, waste management, water conservation; "Social" address how interact with communities employees, including human rights, employee diversity, labor standards, supply chain management; "Governance" operate make sure their actions serve stakeholders' interests, board compensation, risk ethics today's dynamic global economy, incorporation considerations corporate decision-making investment approaches, along an increased focus on disclosures, has become prominent widely acknowledged [3], which helpful achieving longer-term scientific development enterprises, thereby bringing value society.ESG one main drivers long-term value, leading larger future profits [4].Since investors show increasing concern about sustainability it necessary integrate indicators process.In latest issue journal, Sustainable Social Development, Yap et al. [5] published article ESG, they identified three advantages embracing finance based literature reviewed.First, positively influences financial decisions; second, can leverage advancements technology innovations; third, create proactive management.Additionally, investments could improve growth [3].It indicated that serves effective tool enterprises.ESG different concepts.However, there some similarities them.At extent, draws direct connection SDGs' concept creating "shared value" involves finding mutually beneficial ways align market potential, societal demands, policy action promote inclusive economic well-being [6].All things considered, adding business evaluation not only increase revenues but also have positive effects society environment.It thought becomes popular
Language: Английский