Businesses play a vital role in addressing social and environmental challenges through strong Environmental, Social, and Governance (ESG) practices. As Michael Porter explains in his Creating Shared Value concept, companies can generate economic success while solving societal problems. For instance, by adopting clean technologies or reducing carbon emissions, firms not only protect the planet but also reduce long-term costs and enhance operational efficiency.
Socially, companies that invest in fair labor practices, diversity, and community development build trust and strengthen their reputation—creating a more loyal workforce and customer base. From a governance perspective, transparency, ethical leadership, and accountability ensure sustainable decision-making and attract responsible investors.