Sustainable Business Management in the 21st Century: Integrating the ESG Concept to Create Competitive Advantage

Abstract

This article presents the issue of sustainable business management in the 21st century, emphasizing the necessity of integrating ESG (Environmental, Social, and Governance) concepts into organizational strategies to address the increasingly volatile and challenging business context driven by environmental and social factors. The analysis indicates that a focus on short-term profits can no longer meet the sustainability needs of organizations. Companies must adapt by using ESG as a framework for operations to reduce negative impacts on society and the environment while enhancing long-term competitiveness. Integrating ESG also helps build strong relationships with stakeholders and increases business value through risk reduction, cost control, and the creation of new strategic opportunities. Furthermore, sustainable operations require an analysis of the organizational context, the development of clear sustainability policies, engagement from all sectors, and transparent information disclosure to build trust and respond to long-term economic, social, and environmental challenges. As a result, sustainability is not only an organizational responsibility but also a crucial strategic factor determining the future success of businesses.