ESG principles and businesses

ESG principles and businesses. The topic of ESG (which stands for environmental, social and governance) is growing. Worldwide business owners and managers are realizing the importance of performing business activities. That have a positive impact in society and the environment as a whole. 

Companies’ stakeholders are increasingly demanding the implementation of ESG factors, into daily business activities, with the means to improve: transparency, reputation, company value, and overall long-term returns. 

Said this, an important question that raises is:

how can companies increase their value through the implementation of ESG factors into business activities? 

There are studies and surveys that portray the benefits of implementing ESG factors in order to boost the overall value of companies. 

For example, implementing ESG factors may increase labor productivity by improving labor conditions. This can potentially lead to an increase in employee retention rates, hasten motivation, and benefit the overall development and strength of corporate culture. 

Additionally, by implementing ESG factors, a business can potentially entice new sales. This can be attributed to possibly attracting new types of clients. Clients who look into the aforementioned factors when purchasing products or services. (An example can be the increase in demand for eco-friendly products).

Furthermore, the implementation of ESG into a business can perhaps lead to an improvement and rise in customer retention rates in the long-run, which can be credited to new types of certificates that can be potentially attained. 

Overall, companies and corporations are looking into the future. They understand that ESG factors are becoming every day more relevant in order to shape the business of tomorrow.