SOCIAL AND ENVIRONMENTAL RESPONSIBILITY IN INTERNATIONAL BUSINESS
Abstract
The article provides a comprehensive analysis of the concept, mechanisms, and practical significance of social and environmental responsibility in international business, emphasizing its growing role in achieving sustainable global development. It defines social and environmental responsibility as a multidimensional approach that integrates ethical, ecological, and social priorities into corporate strategy, ensuring a balance between profitability and long-term sustainability. The study highlights the increasing importance of ESG (Environmental, Social, and Governance) principles as a global framework for evaluating the performance of multinational corporations. These principles serve as key indicators of responsible business behavior, encompassing climate change mitigation, labor rights protection, corporate transparency, and stakeholder engagement. The article analyzes examples of leading global corporations – such as Unilever, IKEA, Microsoft, and Nestlé – that have successfully embedded sustainability strategies into their operations, demonstrating measurable social and economic benefits. It is shown that adherence to ESG standards not only enhances the reputation and market value of enterprises but also strengthens their competitiveness and resilience during economic instability. The paper identifies the main economic, social, and environmental effects resulting from responsible business practices, including the optimization of resource use, reduction of environmental risks, and creation of favorable conditions for innovation. Attention is also devoted to the role of corporate culture in promoting sustainable behavior, where values such as ethical leadership, transparency, and inclusiveness serve as internal drivers of responsible management. Furthermore, the article discusses existing challenges and constraints in implementing social and environmental responsibility, such as the lack of standardized assessment methodologies, varying national regulations, and the high cost of technological transformation. The findings confirm that integrating social and environmental responsibility into all levels of international business operations en – т sures a company’s strategic stability, reinforces stakeholder trust, and contributes to the formation of a fair, inclusive, and environmentally safe global economy.
References
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Chen Y., Ren J. (2025). How does digital transformation improve ESG performance? Empirical research from 396 enterprises. International Entrepreneurship and Management Journal. Vol. 21, No 1. P. 27. DOI: https://doi.org/10.1007/s11365-024-01011-2
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