MANAGEMENT OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) TO FULFILL STAKEHOLDER EXPECTATIONS IN COMPLIANCE WITH EXISTING LAWS AND REGULATIONS

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ANGGI PRATIWI SITORUS, SAPARUDDIN SIREGAR, NURLAILA

Abstract

Environmental degradation is a serious problem along with the growth and development of companies in every country. This article discusses how ESG practices require management to have the ability to make sustainable predictions to meet the expectations of many types of stakeholders in accordance with existing regulations. the research used is qualitative research using predecessor journals. ESG consists of Environmental, Social, and Governance. Environmental factors include the company's relationship with the physical environment, social factors relate to the social impact of a company on society, and governance factors relate to the way the company is managed. In addition, environmental, social, and governance (ESG) performance activities are interrelated with corporate activities. CSR and ESG are linked to corporate activities that can impact the interests of society and the environment, such as pollution, employee protection, or wise use of natural resources. Disclosure of ESG information at an aggregate level assists investors in comprehensively assessing a company's non-financial performance. These activities to fulfill stakeholders in ESG build on sound financial performance and the ability to manage stakeholder interests. Financial sustainability also demonstrates exemplary corporate governance practices that are positively appreciated by the market.

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