THE PROCESS OF INTEGRATING ESG-PRINCIPLES TO CORPORATE GOVERNANCE PRACTICES

Socio-economic challenges require new approaches and co-operation, as well as the development of social responsibility. The introduction of ESG principles into the practice of corporate governance becomes an important mechanism of transformation of business oriented towards sustainable development, which underlines the relevance of the work. It is noted that the integration of ESG principles into the management process provides a holistic approach that adjusts the environmental, social and management practices of the company to improve its sustainability. It is shown that the process of integrating ESG principles into management practices involves an assessment of both the environmental and social impacts of companies and an assessment of the economic performance they receive. Such an assessment will help to identify weaknesses that need to be optimised by the company, as well as the positive and negative impacts on the surrounding ecosystem and society. An algorithm is proposed for introducing ESG principles into corporate governance practice, which involves the implementation of certain stages. It is revealed that the integration of ESG components into corporate governance practices opens up opportunities for companies to win the trust of investors, gain customer loyalty, reduce operating costs, and improve financial performance. It is noted that the integration of ESG components into corporate governance practices is usually implemented through internal programmes, as well as through the creation of various initiatives.