ESG Practices as a Prerequisite for Effective Management of International Projects in Enterprises
Year: 2024
Type: article
Abstract: The article discusses ESG (Environmental, Social, Governance) practices as a key factor in the effective attraction of financial resources in the process of implementing international projects of different amounts of funding and areas. The experience of companies that are world leaders in their field, as well as the practices of domestic companies, are considered. An analysis of ESG reports of companies that are leaders in the global financial and investment market is carried out. The study analyzes the impact of compliance with ESG criteria on investors’ decision-making on investing in the implementation of international projects in the context of globalization and growing requirements for sustainable development. A review of the literature was carried out in order to determine the basic principles of ESG and their application in various sectors of the economy. Particular attention is paid to how ESG practices contribute to improving the company’s reputation, attracting investors, building sustainable relationships with counterparties, and establishing close relationships with communities. The article also discusses the challenges and opportunities faced by domestic enterprises in integrating ESG approaches into their strategies and in terms of participation in international projects. The authors focus on the importance of domestic business being oriented towards ESG criteria in the process of attracting foreign funds and implementing both local and joint projects related to the recovering from the destruction caused by the war in Ukraine and social projects to support people affected by hostilities. The results of the study indicate that the effective application of ESG practices can become a significant competitive advantage for business entities in the search and implementation of international projects. In addition, the authors identify a number of problems faced by domestic business entities on the way to the implementation of ESG practices, on the basis of which appropriate recommendations are provided for the activation of these processes as at the macro-levels, so at the meso- and micro-levels. Among them: improvement of the regulatory framework; intensification of consulting on ESG; scaling and establishing initiatives aimed at jointly addressing the issues of reproduction and reconstruction based on combining the efforts of business entities, authorities at the national, regional levels and representatives of the international community. Directions for optimizing internal organizational processes at the business level in terms of project orientation and implementation of ESG are also proposed.
Source: Business Inform
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4404257906