The Importance of CSR and ESG in Shaping Competitive and Image Advantage of Enterprises
Purpose: The purpose of the paper is to assess the importance of Corporate Social Responsibility (CSR) management taking into account Environmental, Social and Governance factors (ESG) in the context of building a competitive advantage, image and improving the financial results of enterprises. Design/Methodology/Approach: In order to thoroughly analyze the impact of Corporate Social Responsibility (CSR) and management taking into account Environmental, Social and Governance (ESG) factors on building the competitive advantage of enterprises, a comprehensive research approach was applied. The first step was to conduct a review of the scientific literature. Secondary data was then collected from various sources. The analysis also included case studies from various sectors that report the effects of using CSR and ESG. Findings: The analyzes conducted indicate that investments in CSR and ESG bring benefits both in the short and long term, increasing value for owners, contributing to improve the image of enterprises and reduce operational and financial risk. The importance of these activities is further emphasized by the introduction of international regulations and initiatives, such as the European Green Deal, which impose new requirements on companies regarding sustainable development and its reporting. Practical implications: The paper identifies challenges and barriers in the implementation of CSR and ESG practices, while emphasizing their key role for the future of business in the face of global environmental and social problems. Additionally, the paper draws attention to the growing role of non-financial reporting as a tool that enables the assessment and comparison of companies' activities in the field of social responsibility and sustainable development. Originality: The paper presents the benefits of using CSR and ESG systems in shaping the competitive advantage and image of enterprises and the scope of application of ESG reporting in Polish enterprises listed on the Warsaw Stock Exchange.