Impact entrepreneurship and ESG strategy as an effective alternative to corporate social responsibility

The purpose of this study is to reveal the essence of impact entrepreneurship and ESG strategy, as well as to investigate the hypothesis of the moral obsolescence of the CSR model. The article outlines the stages of forming the CSR model and describes the reasons for the emergence of unscrupulous CSR, which has been termed “washing,” and explains how this phenomenon harms society. The relevance of the study lies in the fact that in the 21st century, the phenomenon of CSR, particularly unscrupulous CSR, has gained significant importance in shaping companies’ reputations, thus necessitating the search for new models to ensure stable and genuinely positive company impacts that benefit society and improve company reputations.Research methods. The research is based on the synthesis methods, including comparative analysis, interpretation, and applying systematic research synthesis.Research results. The study emphasizes that the phenomenon of CSR is morally obsolete, as it cannot effectively control the emergence and spread of unscrupulous CSR practices, which negatively affect public trust in social initiatives and reduce the likelihood of consumer choice in favor of the products of a company that communicates its social responsibility. Instead, the study presents the model of impact entrepreneurship and ESG strategy as a more effective alternative to CSR, capable of ensuring real positive impacts by embedding social effects directly into the company’s products or services and focusing on practices that reduce negative societal impacts. Based on the research results, a list of criteria is provided to help determine whether a company is an impact enterprise. Additionally, examples of companies in the same or related industries working under different models—CSR and impact entrepreneurship—are presented. The proposed perspective on impact entrepreneurship aims to address the following tasks: moral-ethical and social—promoting a culture of genuine business responsibility and creating a positive impact; business and reputational—strengthening the reputation of companies operating under the impact entrepreneurship model and potentially increasing company profits due to reputational competitive advantages.