Implementing Environmental, Social and Governance (ESG) Principles for Sustainable Businesses: A Practical Guide in Sustainability Management (Responsible Leadership and Sustainable Management)

Preface
Contents
List of Figures
List of Tables
List of Acronyms and Abbreviations
About the Authors
1: Introduction: ESG and Corporate Accountability
	References
2: Emergence of ESG Principles
	2.1	 The First Initiative
	2.2	 ESG: “Who Cares Wins” Concept and Freshfield Report
	2.3	 Main ESG Stakeholder Groups
	2.4	 Conferences of the Parties (COPs)
	References
3: ESG-Related Theoretical Frameworks
	3.1	 Concept of Sustainability: The Three-Pillar Model
	3.2	 Corporate Social Responsibility (CSR)
		3.2.1	 Fundamental Concept
		3.2.2	 Carroll’s CSR Pyramid
		3.2.3	 Two-Dimensional Model of Quazi and O’Brien
		3.2.4	 Three-Domain Model by Carroll and Schwartz
		3.2.5	 Corporate Citizenship (CC)
	3.3	 Sustainable Development Goals (SDGs)
	References
4: Public Policies
	4.1	 The Role of Government
	4.2	 Economic Public Policies
	4.3	 Political Power of Private Business
	4.4	 Non-governmental Organization (NGO)
	4.5	 Social Enterprise
	4.6	 Case Study: WFTO (World Fair Trade Organization)
	References
5: Corporate Strategy
	5.1	 Corporate Strategy and Strategy Pyramid
	5.2	 Strategic Management and Strategy Triangle
	5.3	 Strategy Analysis
		5.3.1	 Internal and External Factors
		5.3.2	 PESTEL Analysis
		5.3.3	 Porter’s Five Forces
		5.3.4	 SWOT Analysis
		5.3.5	 Core Competencies Analysis
	References
6: Strategy Selection
	6.1	 Mintzberg’s Strategy Definition (5Ps Model)
	6.2	 Selection Criteria
	6.3	 Strategic Management Tools
		6.3.1	 Porter’s Generic Strategies
		6.3.2	 Ansoff Matrix
		6.3.3	 BCG Matrix
		6.3.4	 McKinsey 7-S Model
		6.3.5	 Blue Ocean Versus Red Ocean Strategy
	6.4	 Case Study: Marvels Strategy Transformation
	References
7: Strategy Implementation
	7.1	 Process of Strategy Implementation
	7.2	 Strategic Architecture
	7.3	 Balanced Scorecard (BSC)
		7.3.1	 Fundamental Concept of Balanced Scorecard (BSC)
		7.3.2	 Vision, Strategy and Performance Management
	7.4	 Change Management
		7.4.1	 Change Management Strategy
		7.4.2	 Lewin’s Change Management Model
		7.4.3	 Kotter’s Eight-Step Change Model
	7.5	 Case Study: Volkswagen Group’s Vision Statement and Sustainability Strategy
	References
8: Approach to ESG Policy
	8.1	 Challenges in Business Practice
	8.2	 McKinsey ESG Approach
		8.2.1	 The Start Point: ESG Purpose and Level of Ambition
			8.2.1.1	 Minimum ESG Policy
			8.2.1.2	 Common ESG Policy
			8.2.1.3	 Next-Level ESG Policy
		8.2.2	 ESG Process Cycle
			8.2.2.1	 Mapping Business Model with ESG Dimensions
			8.2.2.2	 Defining ESG Targets and Monitoring Tools
			8.2.2.3	 Embedding ESG in Business Strategy
			8.2.2.4	 Engaging ESG Stakeholders to Maintain Social License
	8.3	 Case Study: Lufthansa’s ESG Strategy
	References
9: ESG Stakeholders
	9.1	 The Concept of Stakeholder
		9.1.1	 Classic Stakeholder Theory
		9.1.2	 Freeman’s Stakeholder Model
		9.1.3	 Stakeholder Theory vs. Shareholder Value Approach
		9.1.4	 Internal vs. External Stakeholders
	9.2	 Stakeholder Relationships and ESG Strategy
		9.2.1	 Stakeholder Relationship Management (SRM)
		9.2.2	 Identifying Stakeholders
		9.2.3	 Prioritizing Stakeholders
		9.2.4	 Visualizing Stakeholder Community
		9.2.5	 Engaging Stakeholder: The Communication Plan
			9.2.5.1	 Stakeholder Engagement Profile
			9.2.5.2	 Communication Strategy
		9.2.6	 Monitoring Stakeholder Relationships
			9.2.6.1	 Maintaining Stakeholder Community
			9.2.6.2	 Reviewing Stakeholder Engagement Profile
	9.3	 Case Study: LVMH Louis Vuitton Moët Hennessy SE
		9.3.1	 Art and Culture
		9.3.2	 Life 360
		9.3.3	 2025 CSR Roadmap
	References
10: ESG in Risk Management
	10.1	 Fundamentals of Risk Management
	10.2	 PWC Four-Step Framework for ESG Risk Management
	10.3	 ISO 31000:2018 and ESG Risk Management
	10.4	 Case Study: Nestlé S.A.
	References
11: ESG Reporting Rules
	11.1	 Corporate Governance
	11.2	 Globalization and ESG Reporting
	11.3	 Regulators of ESG Reporting
	11.4	 ESG Reporting Requirements in Europe
		11.4.1	 Applicable Rules and Regulations
		11.4.2	 EU Taxonomy for Sustainable Activities
		11.4.3	 Corporate Sustainability Reporting Directive (CSRD)
		11.4.4	 ESG Reporting Standards
			11.4.4.1	 International Sustainability Standards Board (ISSB) Standards
			11.4.4.2	 Global Reporting Initiative (GRI)
			11.4.4.3	 European Sustainability Reporting Standards (ESRS)
	References
12: ESG Metrics
	12.1	 Types of ESG Metrics
	12.2	 ESG Ratings
	12.3	 ISO Standards and Certifications
		12.3.1	 ESG-Relevant ISO Standards and Certifications
		12.3.2	 Global Influence of ISO Standards and Certifications
		12.3.3	 Certification Process on Example of ISO 9001: 2015
	12.4	 Case Study: The DWS Case
	References
13: Consumer Relationship and Sustainable Talent Management
	13.1	 Stakeholders in Public Attentions
	13.2	 Consumer Relationship
		13.2.1	 Power of Consumer and Sustainable Consumption
		13.2.2	 Consumer Protection
	13.3	 Sustainable Talent Management
		13.3.1	 David Ulrich Model and the Role of Talent Management
		13.3.2	 Talent Management Processes
		13.3.3	 Prioritizing Employee Experience
			13.3.3.1	 Diversity, Equity and Inclusion (DEI)
			13.3.3.2	 New Work: Working Conditions in the Era of Digitalization
			13.3.3.3	 Fair Wage
			13.3.3.4	 Dismissal Protection
			13.3.3.5	 Employee Privacy
	13.4	 Case Study: Apply Inc.
	References
14: Sustainability Marketing
	14.1	 Marketing Strategy
		14.1.1	 Purpose of Marketing Strategy
		14.1.2	 Marketing Mix for Physical Products: 4Ps Model
		14.1.3	 Marketing Mix for Service Industry: 7Ps Model
	14.2	 Marketing Strategy as Driver for ESG Implementation
		14.2.1	 Transformational Marketing Concept with ESG
		14.2.2	 Creating Shared Value (CSV)
		14.2.3	 Cause-Related Marketing (CRM)
		14.2.4	 Transformative Marketing Concept
	14.3	 Case Study: Tesla and Disruption of the Automotive Industry
	14.4	 Case Study: The Walt Disney Company’s ESG Concept
	References
15: Sustainable Supply Chain
	15.1	 The German Supply Chain Act
	15.2	 Supply Chain Network
		15.2.1	 Procurement and Supply Chain Management
		15.2.2	 Objectives of Supply Chain Management
			15.2.2.1	 Seven Rights (7Rs) of Logistics
			15.2.2.2	 Triple Constraint Model: Cost-Time-Quality
	15.3	 Special Decisions in Supplier Management
	15.4	 ESG Issues in Supplier Management
		15.4.1	 The Role of ESG in Supplier Management
		15.4.2	 Human Rights
		15.4.3	 Environmental Protection
		15.4.4	 Fair Trade and Ethical Trading
		15.4.5	 Fair Competition
	15.5	 Case study: Aroundtown’s ESG Concept for Housing Market
	References
16: Outlook to ESG Future Trends
	16.1	 Climate Litigation
	16.2	 Green Financing
	16.3	 Carbon Pricing
	16.4	 Consolidation of ESG Reporting Standards
	16.5	 The Challenge of Disruptive Innovations
	References
Index