From Obstacles to Opportunities: Enabligh ESG Adoption in SMEs

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F04274644%3A_____%2F23%3A%230001031" target="_blank" >RIV/04274644:_____/23:#0001031 - isvavai.cz</a>

Result on the web

<a href="https://www.derivat.sk/files/casopis%20financne%20trhy%202023/FT_1_2023%20_Jilkova,Knihova_From%20Obstacles%20to%20Opportunities_Enabling%20ESG%20Adoption%20in%20SMEs_FINAL.pdf" target="_blank" >https://www.derivat.sk/files/casopis%20financne%20trhy%202023/FT_1_2023%20_Jilkova,Knihova_From%20Obstacles%20to%20Opportunities_Enabling%20ESG%20Adoption%20in%20SMEs_FINAL.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

From Obstacles to Opportunities: Enabligh ESG Adoption in SMEs

Original language description

The objective of this article is to delve deeply into the role of Environmental, Social, and Governance (ESG) factors within Small and Medium Enterprises (SMEs), their impact on competitiveness and resilience, and the significant influence large companies have in promoting ESG adoption among their SME suppliers. The primary research, conducted in large corporations during the latter half of 2021 and the early part of 2022, lies at the heart of this paper. This research, although limited in its reach due to the ongoing pandemic, provides crucial insights into these corporations’ Corporate Social Responsibility (CSR) practices before the enforcement of the Corporate Sustainability Reporting Directive (CSRD) by the EU. Our study illuminates the extent to which these companies integrated ESG reporting into their operations before introducing the CSRD, offering a distinctive pre-regulation perspective. Findings from our research questions revealed that 50% of large companies’ respondents incorporated CSR activities as a significant part of their marketing communication, while over 54% reported intensive CSR activities within their companies. These results indicate a proactive engagement in CSR practices among respondents despite the absence of regulatory compulsion. Nevertheless, in the context of new EU directives and increased demands for ESG non-financial reporting, our data suggests that many large companies were not sufficiently engaged in non-financial reporting, primarily when it was voluntary. However, the introduction of the CSRD necessitates a radical shift in approach, requiring companies to demonstrate an authentic commitment to ESG, a step that we posit could engender greater stakeholder trust, an enhanced reputation, and better financial performance. Despite the limitations and challenges of our research, the insights gleaned provide a meaningful foundation for future study in a post-CSRD landscape.

Czech name

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Czech description

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Type

J_ost - Miscellaneous article in a specialist periodical

CEP classification

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OECD FORD branch

50204 - Business and management

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Finančné trhy

ISSN

1336-5711

e-ISSN

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Volume of the periodical

XX

Issue of the periodical within the volume

131

Country of publishing house

SK - SLOVAKIA

Number of pages

16

Pages from-to

1-16

UT code for WoS article

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EID of the result in the Scopus database

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