The ESG strategy is a fundamental pillar for a sustainable company.
This concept stands for Environmental, Social and Government to refer to environmental, social (impact on the community) and governance (impact of management on the company) factors. The companies that are most resistant to unexpected events are those that include these social, environmental and good governance policies in their strategy.
For this reason, it is in our best interest to include ESG actions in our long-term measures. We must align it with the values, vision and culture of the company; and that is why the strategy must be differentiating.
The economist Michael Porter, renowned in business strategy, explains the concept of shared value: the alignment of our company’s success with the success of our community. Porter distinguishes between operational efficiency (standing out from the competition) and strategy (differentiation). In his 2011 publication, he formulates an approach on how to form the basis and development of this concept of shared value.
- Rethinking new products and markets to respond to problems of an environmental or social nature.
- Redefining productivity along the value chain: Focusing on practices that favour and boost operational efficiency in order to maximize profits.
- Develop local clusters: The company is part of an ecosystem that it can (and should) favour through the development of collaborative actions, alliances and agreements established with the rest of the stakeholders.
Aware of the importance of the ESG strategy, it is advisable to have a good manager to accompany us in its implementation. We must make sure that it has vast experience in the matter so that she can guide us in the best possible way; always showing transparency, responsibility and involvement.
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