ESG METRICS AS A TOOL FOR MEASURING CORPORATE SOCIAL RESPONSIBILITY (A CASE STUDY OF AGRO-COMPANIES)

Abstract

The article is devoted to the study of the concept of ESG (Environmental, Social, Governance) as a modern paradigm of corporate responsibility and the concept of sustainable development. The aim of the article is to identify common and distinctive features between corporate social responsibility (CSR) and ESG, to clarify how they relate to each other (using the example of agricultural holdings). The relevance of the study is explained by the growing interest in the environmental, social, and governance aspects of companies' operations in connection with the current global challenge of promoting sustainable development. The study used the methods of a systematic approach, synthesis and analysis, comparison and generalization. The authors made a comparative analysis of the terms CSR and ESG, highlighted their common and distinctive features. This allowed us to determine the relationship between these concepts. The most important factor that unites CSR and ESG is contributing to the achievement of the Sustainable Development Goals. It is argued that CSR is an element of business philosophy, on the basis of which its strategy is built, and ESG is a system for evaluating socially responsible behavior, which is embodied in specific practical actions and is an object of interest from outsiders. It is with the help of ESG that one can assess the degree of social responsibility and structure the socially responsible actions of the company. ESG transforms qualitative CSR obligations into quantitative indicators. Using non-financial reporting of Ukrainian agricultural companies, the authors made a comparative analysis of their activities from the perspective of promoting sustainable development. This led to the conclusion that agroholdings include social, environmental and management aspects in their strategy and policies. Such activities facilitate access to financing, especially in international markets. The authors emphasized that the decisive role in the socially responsible position of each company belongs to top management. It is the top managers who must transmit values and guidelines, integrate them into the company's strategy and unite employees around them.