Corporate governance as a fundamental pillar of ESG practices

ESG (Environmental, Social, and Governance) practices are essential to strengthen the reputation and reliability of a company. In the current market, organizations that invest and excel in the area are often cited as leaders in social and environmental responsibility, obtaining positive impacts on their operations and, consequently, on their financial results.

Commitment to ESG criteria has a significant impact on corporate governance, resulting in important changes in the way companies are managed, evaluated and perceived by society. Practices require the implementation of clear metrics and indicators, which strengthens accountability and promotes greater transparency in corporate operations and processes.

Decision-making becomes risk-based (environmental, social and regulatory), which contributes to the promotion of business sustainability.In addition, companies that follow ESG practices prioritize engagement with stakeholders nd as investors, customers, employees and communities that come to see them as more responsible and committed.

The highest confidence of stakeholders it fosters a more inclusive dialogue, considering diverse needs and expectations. This alignment with contemporary values generates identification and admiration both among consumers and among investors, not to mention in society in general. Sustainable and ethical action reduces the risks of scandals, environmental damage and inappropriate practices, strengthening the positive perception of the brand.

With regard specifically to investors, it is already proven that they have a preference for companies with good governance and sustainability practices. Already in relation to the current consumption pattern, several studies show that modern consumers prefer brands that demonstrate responsibility. Meanwhile, employees of organizations committed to good practices tend to feel more proud of their own work and, in this way, be more motivated and productive.

However, for the results to be truly achieved, the engagement must be true. Today, much is said about the green washing and the social washing, practices in which, respectively, companies try to create a false impression of commitment to issues related to environmental sustainability and important social causes. Escape from them! Everything that involves the dissemination of misleading messages or campaigns is highly harmful. The real commitment to ESG practices is the secret to the long and prosperous path.