Achieving Social Sustainable Development Goals through ESG - a Conceptual Analysis

Abstract

The concept of ESG is dynamic and versatile and particularly targets the conduct of companies that, in addition to financial and performance criteria, propose to integrate social, environmental and good governance elements. Through this compliance with ESG, companies aim to be able to maintain their dominant position in the market, to obtain investments or bank loans much more easily or under better conditions, but also to contribute positively and actively to the world in which they operate. From this perspective, ESG becomes an assessment tool and attitudinal guidance at the company management level regarding sustainability and responsible behavior. At the macroeconomic level, the extensive and generalized application of ESG at the company level can create structural changes in society regarding organizational performance, contributing to the achievement of the 2030 Agenda. From this perspective, the study aims to analyze the conceptual framework regarding the interdependencies between ESG and sustainable development targets regarding the social component. The methodology aims at a theoretical, explanatory, conceptual and functional analysis of the connections between the two elements. From this perspective, the study will focus on the conceptual analysis of SDGs 3,4,5,8 and 10 in relation to ESG. The results confirm the capacity of ESG to assess and implement sustainable development targets at the company level, but also the capacity of SDGs to expand and build the broad normative framework for ESG functioning. UDC: 005.35:502.131.1; JEL: G41, M14, Q01