ESG practices (Environmental, Social, and Governance) are essential to strengthen a company's reputation and reliability. In the current market, organizations that invest and stand out in the area are often cited as leaders in social and environmental responsibility, achieving positive impacts in their operations and, consequently, in your financial results
The commitment to ESG criteria has a significant impact on corporate governance, resulting in significant changes in the way companies are managed, evaluated and perceived by society. The practices require the implementation of clear metrics and indicators, what strengthens accountability and promotes greater transparency in corporate operations and processes
Decision-making becomes based on risks (environmental, social and regulatory, what contributes to the promotion of business sustainability. Furthermore, companies that follow ESG practices prioritize engagement withstakeholders – as investors, clients, collaborators and communities – who come to see them as more responsible and committed
The greatest confidence ofstakeholdersfosters a more inclusive dialogue, considering diverse needs and expectations. This alignment with contemporary values generates identification and admiration among both consumers and investors, not to mention society in general. Sustainable and ethical performance reduces the risk of scandals, environmental damage and inadequate practices, strengthening the positive perception of the brand
Regarding specifically the investors, it is already proven that they prefer companies with good governance and sustainability practices. As for the current consumption pattern, various studies show that modern consumers prefer brands that demonstrate responsibility. Meanwhile, employees of organizations committed to good practices tend to feel prouder of their own work and, in this way, be more motivated and productive
However, so that the results are truly achieved, engagement must be genuine. Today, much is said about thegreen washingand thesocial washing, practices in which, respectively, companies try to create a false impression of commitment to issues related to environmental sustainability and important social causes. Run away from them! Everything that involves the dissemination of misleading messages or campaigns is highly harmful. The true commitment to ESG practices is the secret for the path to be long and prosperous
