Practices strengthen image, attract investment and promote social and environmental innovation to compete globally
*Per Clara Savelli
The acronym "ESG" is increasingly gaining ground beyond mere theory. Integrating Environmental, Social, and Governance (ESG) criteria has become essential for companies seeking not only profitability but also a substantial positive impact on their operations and society. The Brazilian Association of Software Companies (ABES), for example, has demonstrated its ongoing commitment to the UN Global Compact, encouraging its members to adopt best sustainability practices and contributing to building a more ethical and responsible industry.
Studies indicate that robust ESG practices increase stakeholder trust and strengthen corporate image, resulting in significant competitive advantages in public tenders and in attracting investors (Bortoluzzi et al., 2023). It is in this sense that initiatives such as An Ethical Company Program, from ABES, demonstrate an ongoing commitment to ethics in public and private business, essential to building a fairer and more transparent IT industry.
ESG actions can drive innovation and open up new opportunities in the technology market, especially in a scenario of talent shortages. ABES, through Mobilization for Inequality Reduction, highlights how IT equipment recycling not only preserves the environment but also promotes social inclusion by empowering vulnerable communities. Studies show that companies that invest in sustainable innovation often outperform their competitors in the long term, both in profitability and market relevance (Engholm et al., 2022). The best part is that any company can join the movement and be part of this green revolution, which changes lives and helps save our planet.
Strategic partnerships play a crucial role in expanding ESG practices, as evidenced by the collaboration between ABES, ReUrbi, and the Third Sector Observatory, which are responsible for the Mobilization for Reducing Inequality. These alliances enable companies and organizations to achieve complex social and environmental goals, such as the proper disposal of electronic waste and increasing digital inclusion. According to Santos and Ribeiro (2024), ESG practices strengthen corporate governance by creating more transparent and accountable structures, aligning companies with the expectations of global stakeholders, and promoting a sustainable and strategic approach across various sectors.
Companies that adopt ESG practices are better prepared to compete globally. By incorporating sustainability criteria into their operations, they align themselves with the demands of mature markets and strict international regulations, consolidating their competitiveness and reducing legal risks (Araújo, 2017). Innovative companies, therefore, have a greater capacity for internationalization, using sustainable practices as a strategic differentiator. This process occurs because ESG initiatives not only improve a company's image but also make it more competitive in global markets that value sustainability and social responsibility.
According to Ribeiro and Guimarães (2024), companies that adopt practices aligned with ESG criteria are able to establish stronger connections with international partners, especially in sectors that prioritize transparency and sustainability. The research also indicates that, by integrating sustainable practices into their organizational structure, these companies are able to meet the regulatory requirements of more mature markets while positioning themselves as pioneers in innovation. This reinforces how ESG acts as a pillar not only of corporate responsibility but also of strategic expansion in a constantly changing global economic landscape.
Integrating ESG into the technology market is not only an ethical necessity, but a long-term strategy for companies seeking sustainable growth. ABES's experience, with its membership in the Global Compact and initiatives such as the Mobilization for Reducing Inequality, offers an inspiring model for other companies in the sector.
It's up to everyone, whether business leaders or industry professionals, to encourage the adoption of ESG practices and explore new partnerships and market opportunities. By promoting a sustainable and ethical vision, companies can achieve a positive impact that transcends profits, contributing to a more just society and a healthier planet.
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
Article originally published on the IT Forum website: https://itforum.com.br/colunas/integrando-esg-mercado-tecnologia/
References:
ARAÚJO, DM Industrial policy and IT: an economic-legal study of the use of the State's purchasing power in Brazil (2012-2016). 2017. Available at: . Accessed on: December 10, 2024.
BORTOLUZZI, CR et al. Mapping startups that serve smart cities: a case study in the Brazilian construction and real estate market. 2023. Available at: . Accessed on: December 10, 2024.
ENGHOLM, EF; MOSCARDINI, GT; BRITTO, LP; CORDEIRO, VC The development of innovations in startups that contribute to waste disposal. 2022. Available at: . Accessed on: December 10, 2024.
RIBEIRO, CPP; GUIMARÃES, MP The influence of ESG practices on the internationalization of Dengo. Journal of the Engineering and Technology Meeting, 2024. Available at: . Accessed on: December 10, 2024.
SANTOS, JP dos; RIBEIRO, LS ESG governance in agribusiness: an analysis of trends, practices, and gaps. Journal of Management and Secretariat, 2024. Available at: <https://ojs.revistagesec.org.br/secretariado/article/download/4162/2699>. Accessed on: December 10, 2024.
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