THE CONCEPT OF DEVELOPING AN ESG-ORIENTED CORPORATE CULTURE IN FINANCIAL INSTITUTIONS OF UKRAINE
DOI:
https://doi.org/10.17721/1728-2667.2024/225-2/6Keywords:
financial institution , corporate culture, sustainable development, ESG-concept, ESG-orientedAbstract
B a c k g r o u n d. One of the key strategies for achieving sustainable development goals and effectively managing contemporary risks is the integration of ESG-concepts into the activities of economic entities. In global practice, the development of ESG-strategies by financial institutions is undertaken comprehensively, ensuring the incorporation of key principles into all aspects of business operations, including corporate culture. While Ukrainian financial institutions have already started to adopt ESG-principles, these initiatives are largely formal and lack of integration into the corporate culture transformation process.
M e t h o d s. In this research, general scientific methods were utilized to formulate the study's core ideas, while the formalization method was applied to visually depict the foundations of an ESG-oriented corporate culture, the argumentation method was employed to determine obstacles to the transformation of corporate culture and ways to overcome them, and the method of alternatives was used to compare potential pathways for developing ESG-approaches within Ukrainian financial institutions.
R e s u l t s: The foundation for developing an ESG-oriented corporate culture in Ukrainian financial institutions has been formulated, and a phased concept for its advancement, considering existing obstacles, has been proposed. Measures for implementing the principle of employee engagement in ESG-oriented corporate culture have been identified and systematized based on external and internal factors.
C o n c l u s i o n s: The principle of employee engagement has been identified as a pivotal element in the transformation of corporate culture within Ukrainian financial institutions, as it facilitates proactive participation of staff in the implementation of ESG-concepts, optimizes inter-functional collaboration and cultivates a deep awareness among employees regarding their essential role in the sustainable development.
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