THE INTEGRATION OF ESG FACTORS IN BUSINESS STRATEGIES – COMPETITIVE ADVANTAGE

Abstract

Uncertainty, increasingly higher and diverse risks but also the opportunities generated by the environmental, social and corporate governance factors’ actions, have led to a change of approach in the business environment - these factors are no longer treated randomly and punctually in business strategies but, in an integrated approach, in the form of ESG factors. Consequently, starting with 2005, responsible investments (ESG investments) gradually increased, becoming a decisive criterion in investment decisions, both at individual and institutional level, especially on the financial markets. It was also facilitated by their regulation and the introduction of general principles and criteria for analysis and degree of implementation measurement at the organizations’ level. Given the positive externalities generated, the purpose of the paper is to popularize and promote this type of investment and, implicitly, the sustainable behavior in business, based on the principles of sustainable growth. In this sense, we used open documentation sources of international specialized institutions, the research method having both theoretical character by presenting the conceptual evolution of ESG investments and empirical character by revealing the dynamics, advantages and limits of integrating ESG criteria in business strategies.

Keywords

• competitiveness
• investment analysis
• esg factors
• responsible investments
• sustainability