Academic Journal of Humanities & Social Sciences, 2024, 7(2); doi: 10.25236/AJHSS.2024.070225.
Jian Li1, Zhenghui Pan1,2,3, Yang Sun1, Wei Zheng1, Zhisheng Zhang1,2, Zhifang Wang1
1Strategic Business Management Research Areas, Doctor of Business Administration, Russian University of Transport, Moscow, Russia
2IoT Technology and Application Areas, Doctorate in Computer Science, San Antonio Catholic University of Murcia, Murcia, Spain
3AIoT Laboratory, IoT Intelligent Link Technology and Application Areas, Great Wall Motor Holdings Group, Shanghai, China
This article comprehensively analyzes the evolution of corporate Environmental, Social, and Governance (ESG) practices, transitioning from an initial phase of compliance-oriented practices (ESG 1.0) to a mature phase led by strategic integration (ESG 2.0). The paper begins with a retrospective of the historical development of corporate ESG practices, highlighting that in the early 21st century, corporate focus on ESG was predominantly centered on meeting external regulations and standards. With the deepening understanding of sustainable development goals, businesses have started to recognize ESG as a core component of their strategy, realizing that robust ESG practices can bring long-term benefits to the company. The article further explores the current state of corporate ESG cognition and action, noting that most businesses still remain at a basic stage in their ESG practices. Additionally, it delves into key issues in ESG management, such as the role of the board of directors, the allocation of management functions, the construction and implementation of performance management frameworks, and strategies for information disclosure. Lastly, the paper forecasts the future development of ESG practices, emphasizing the challenges and opportunities that businesses will face, with an anticipation of a further deepening and maturation of ESG practices.
Corporate ESG Practices; Compliance to Strategy Transition; Sustainable Development; Corporate Governance; Environmental Protection; Social Responsibility
Jian Li, Zhenghui Pan, Yang Sun, Wei Zheng, Zhisheng Zhang, Zhifang Wang. From Compliance to Strategy: Paradigm Shift in Corporate ESG Practices. Academic Journal of Humanities & Social Sciences (2024) Vol. 7, Issue 2: 185-193. https://doi.org/10.25236/AJHSS.2024.070225.
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