FORMATION OF COMPETITIVE ADVANTAGES OF AN ENTERPRISE ON THE BASIS OF SUSTAINABLE DEVELOPMENT
Abstract
The article examines the impact of sustainable development on the performance of business entities. The relevance of the topic is associated with the increasing negative impact of the results of current human activity on the state of the environment and the future of generations, as well as changes in consumer behavior, in particular, modern consumers and investors increasingly prefer environmentally responsible and socially oriented business. The implementation of the principles of sustainable development from the report on the state of the earth's subsoil to the current state is analyzed. The impact of the implementation of ESG imperatives in the activities of enterprises as the main source of forming sustainable competitive advantages in the long term is highlighted, which is especially relevant due to the gradual entry of Ukrainian enterprises into the European environment. The differences between the concepts of sustainable development and ESG are presented; the concepts on the basis of which the integration of sustainable development into the activities of enterprises should take place are revealed. The impact of sustainable development on the formation of competitive advantages is outlined. It is noted that the impact is multidimensional and will manifest itself through increased profitability, strengthening market position, improving reputation, changing the business model and focusing on responsibility to all stakeholders, creating new market niches (blue ocean strategy) with a strong competitive position in them. An ESG model for assessing the impact of sustainable development on the competitiveness of an enterprise has been developed. ESG indicators that can be used in the assessment process are detailed, an interpretation of the values of the sustainable development index is provided, and brief proposals for changes are proposed. It is noted that the developed model is recommended for use only in homogeneous markets (industry or regional). It is concluded that in conditions of global instability, environmental crises, and increased requirements for the environmental friendliness of products, such an approach becomes not only a tool for competition, but also a guarantee of the long-term viability of the company.
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