The competition among companies stimulates innovation and increases efficiency and productivity, as well as creates opportunities for entrepreneurs to enter a market and develop their businesses. Therefore, companies work to align their competitive strategies by seeking to understand critical factors for success in the present and perceptions about their future trajectory.
If you have a business, no matter what it is, you know that you must adopt strategies at every moment that focus on competing in price, sales efforts, or product differentiation in line with the current competitive standard in your market. These strategies are investments in increasing productive efficiency, quality, innovation, marketing, etc.
The term ESG has been used to refer to business and investment practices that are concerned with sustainability criteria, not just profit. The acronym stands for "Environmental, Social and Governance," and adopting ESG represents a true paradigm shift in the relationship between companies and their investors, as practices traditionally associated with sustainability are now considered part of the financial strategy of these groups.
ESG is now being used as a kind of metric to guide good corporate practices, and it is worth noting that funds that invest exclusively in businesses seen as sustainable are an increasingly growing trend. This has a reason, companies that adopt these practices have a long-term business vision and tend to be less fragile in times of crisis.
The objective should then be to promote economic development from a socially and environmentally sustainable perspective. According to these organizations, the main benefits for companies would be: increased institutional image and brand value; greater consumer loyalty; greater ability to recruit and retain talent; flexibility and adaptability and longevity.
If that were not enough, the fact that companies adopt ethical positions and social commitments with the population can be a great differential for their business, especially regarding profitability and growth indicators over a certain period. You will be delivering value and positive actions on your chain, consequently reaching your employees and the population, without ceasing to generate better results.
For these and many other factors, the ESG trend is currently seen as a primary factor in decisions within globalized organizations. The sustainability indices within companies are increasingly valued and discussed in the corporate environment, even becoming important in world stock exchanges, making the shares of these companies more profitable.
Therefore, the debate is no longer in the future. If you are looking for investments, engaged employees, or simply want to sell and have good profitability, standing out from your competitors, it is worth understanding how your company is coordinated with the theme and what is being done in ESG. Society and the longevity of your company will thank you!
KRAEMER, Maria Elisabeth P. “Responsabilidade Social Corporativa como Estratégia para o Desenvolvimento Sustentável”.
“Regulação e Agências Reguladoras Governança e Análise de Impacto Regulatório”. 2009. Disponível em:<https://www.gov.br/anvisa/pt-br/centraisdeconteudo/publicacoes/regulamentacao/regulacao-e-agencias-reguladoras-governanca-e-analise-de-impacto-regulatorio.pdf/view>.
“Entenda o que é ESG e qual sua importância”. Disponível em:< https://www.ecycle.com.br/esg/>