ESG TRANSFORMATION IN FUCTION OF CHANGE MANAGEMENT FOR SUSTAINABILITY

Abstract

In methodological and empirical meaning, usually arises the challenge of the reasons for the increased importance of the ESG, particularly for advanced and change-oriented businesses ESG is sometimes referred to as sustainable investing, which involves conducting business that provides long-term value without producing any negative effects on the environment or society.  A good ESG strategy includes sustainability factors – such as a company's efforts toward reducing its carbon footprint, going green, encouraging diversity or introducing employee wellness programs. As such, an ESG strategy paves the way for a company to gain investor confidence, earn customer loyalty, reduce operating costs and improve both asset management and financial performance.  ESG should be a transformational, change management effort that touches every part of the business. Otherwise, managers will experience confusion over their role in implementing an ESG strategy, teams will continue to operate business as usual and ESG commitments will go unfulfilled. But leaders who commit to reworking norms, cultivating new behaviors and building new processes will create an environment in which ESG becomes part of the culture and a north star that helps orient all decisions. This, in turn, will position their organizations to lead on ESG and take a meaningful role in addressing the biggest environmental and social issues of our time. Companies need to take an active role in the community, beyond just making a profit. The positive benefits of this strategy include the company’s expansion and durability of its success. Sustainable development is a core principle of the Treaty on European Union and a priority objective for the EU's internal and external policies. The United Nations 2030 Agenda includes 17 Sustainable Development Goals (SDGs). ESG sustainability is crucial for businesses as it enhances reputation, attracts socially conscious investors, reduces risks, fosters innovation, and aligns with evolving consumer preferences, driving long-term profitability while contributing to a more sustainable and equitable world. The goal of this research paper is to examine the influence of ESG towards the overall competitiveness and sustainable development of businesses.