ESG (environmental, social, and governance) continues to evolve and there is no agreement as to whether it can coexist with profit maximization goals. As a result, some businesses have not been fully committed to ESG, and progress toward global sustainability has been less than optimal. This research explores the strategies that can motivate businesses to embrace ESG initiatives.
One of the main barriers facing this undertaking is the lack of standard measurements to assess ESG effectiveness. The other challenge for businesses is the need to interact with and potentially accommodate diverse groups of stakeholders whose objectives may not coincide with corporate priorities. Among the key stakeholders are boards of directors who must balance financial and ESG priorities while recognizing and maintaining the reputations and brands of the firms that they support.
One of the ways to motivate businesses to embrace ESG is by exhibiting linkages to corporate strategies. The key strategies deal with financial planning, risk mitigation, board diversity, brand management, and stakeholder relationships. The principles of evidence-based research are applied to provide recommendations dealing with the implementation of these strategies to address the business problem. Evidence-based research derives principles from theories and translates them into decision tools that address tangible organizational challenges (Rousseau, 2006). The Rapid Evidence Assessment (REA) methodology is utilized to search for and evaluate relevant literature, to develop themes and actionable plans, and to identify areas that require additional research all in support of driving progress in this global imperative.
Authors: Jeff Gold
Cite as: Gold, J. (2023). What strategies can motivate businesses to consider implementing ESG? Muma Business Review 7(10). 133-139. https://doi.org/10.28945/5207