Year: 2024
Type: article
Abstract: This article comprehensively analyzes the evolution of corporate Environmental, Social, and Governance (ESG) practices, transitioning from an initial phase of compliance-oriented practices (ESG 1.0) to a mature phase led by strategic integration (ESG 2.0). The paper begins with a retrospective of the historical development of corporate ESG practices, highlighting that in the early 21st century, corporate focus on ESG was predominantly centered on meeting external regulations and standards. With the deepening understanding of sustainable development goals, businesses have started to recognize ESG as a core component of their strategy, realizing that robust ESG practices can bring long-term benefits to the company. The article further explores the current state of corporate ESG cognition and action, noting that most businesses still remain at a basic stage in their ESG practices. Additionally, it delves into key issues in ESG management, such as the role of the board of directors, the allocation of management functions, the construction and implementation of performance management frameworks, and strategies for information disclosure. Lastly, the paper forecasts the future development of ESG practices, emphasizing the challenges and opportunities that businesses will face, with an anticipation of a further deepening and maturation of ESG practices.
Author: <p>Jian Li<sup>1</sup>, Zhenghui Pan<sup>1,2,3</sup>, Yang Sun<sup>1</sup>, Wei Zheng<sup>1</sup>, Zhisheng Zhang<sup>1,2</sup>, Zhifang Wang<sup>1</sup></p>
Institution: Russian University of Transport
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4392860143