1
Strategic Management
Author
Professor
Institution
Course
Date
2
Strategic Management
Question 1
ESG is the framework through which organizations appraise and act on their
environmental, social, and governance responsibilities. Environmental aspects relate to how a
company mitigates its ecological footprint by reducing carbon emissions, managing waste, and
promoting renewable energy (Sierdovski et al., 2022). Social aspects include relations with
employees, customers, communities, and supply chains, including diversity, equity, and
inclusion. Governance refers to the ethical management and governance of the organization,
involving transparency, stakeholder engagement, and regulatory compliance. ESG not only
aligns business strategies with the broader objectives of society but also promotes long-term
value creation that ensures sustainability in operations and fosters trust among its stakeholders.
ESG is of prime concern in strategic management, giving a company long-standing
success, reputation, and adaptiveness to a rapidly evolving world. With increased consumer
investor focus on sustainability and proper ethics, companies that look out for ESG achieve an
advantage through trust and loyalty (Liang et al., 2022). Neglecting ESG opens the door to
financial losses from regulatory fines, brand reputation, and reduced markets. Furthermore,
strong ESG performance appeals to investors, boosts employee satisfaction and makes operations
resilient in environmental or social crises. Integrating ESG into strategic management will drive
organizations to proactively act upon risks and opportunities while keeping up with global trends
on sustainability, ensuring continued growth and positive societal impact in an increasingly
competitive marketplace.
I will integrate ESG into my recommendations by embedding sustainability, social
responsibility, and governance practices into our company's strategic priorities. Regarding
3
environmental impact, I would suggest quantifiable objectives such as reducing carbon emissions
through energy-efficient operations and promoting renewable energy use (Tuteja et al., 2024).
On the social front, I will advocate for increasing employee well-being, encouraging diversity
and inclusion, and giving back to the community. I will recommend clear accountability
frameworks for governance to ensure openness and ethics in decision-making. By aligning these
initiatives with our company's goals, we can help engender trust with stakeholders, enhance our
operational resiliency, and ultimately attain long-term, sustainable growth by positioning
ourselves as leaders within the industry.
Question 2
To ensure success and compliance, key considerations must be addressed when
conducting business across borders. Understanding cultural differences is critical, as business
practices, communication styles, and consumer behavior vary widely between countries
(Aririguzoh., 2022). Legal and regulatory requirements must be carefully navigated to avoid
legal complications, including labor laws, tax policies, trade agreements, and compliance
standards. There is also a need to account for currency fluctuation and financial risks concerning
different exchange rates and economic stability during financial planning. On the other hand,
logistics in the supply chain include tariff and customs clearance issues, which need strategic
management to maintain efficiency. The political stability and local government policies affect
the operations and security of investments. Third and lastly, organizations need to decide on
ethical issues concerning labor practices and environmental standards and build trust by retaining
a global reputation. Thus, extensive planning and adaptability provide a sound basis for meeting
cross-border complexities and successfully fostering growth in the international markets.
4
References
Aririguzoh, S. (2022). Communication competencies, culture, and SDGs: effective processes to
cross-cultural communication. Humanities and Social Sciences Communications, 9(1), 1-
11.
Liang, Y., Lee, M. J., & Jung, J. S. (2022). Dynamic capabilities and an ESG strategy for
sustainable management performance. Frontiers in Psychology, 13, 887776.
Sierdovski, M., Pilatti, L. A., & Rubbo, P. (2022). Organizational competencies in developing
Environmental, Social, and Governance (ESG) criteria in the industrial sector.
Sustainability, 14(20), 13463.
Tuteja, A., Joshi, D., Prakash, A., & Gaur, S. (2024). Sustainability Strategies In Contemporary
Business Management: Integrating Environmental, Social, And Governance (ESG)
Principles. Educational Administration: Theory and Practice, 30(5), 7562-7568.
