The ongoing discussion on corporate social responsibility and sustainability in Poland has spanned more than 25 years. During this time, there has been a range of approaches among management boards in terms of incorporating social and environmental aspects into business strategies. Initially, companies with a focus on social responsibility sought to collaborate with various stakeholder groups in a responsible and ethical manner. However, social responsibility was not always given priority in the decision-making process.

This has influenced the introduction of ESG at the European level, providing a new framework for verifying and monitoring business performance in light of current challenges and possible future scenarios. Strategies have evolved to emphasize measurability and key issues related to sustainability goals.

While it is not possible for any company to address every social and environmental issue, it can examine its areas of greatest impact, risks, and constraints, and use this information to design a viable growth and development strategy. There are two parallel approaches to the strategic dimension of sustainable development in the market. Some organizations have opted to formulate two separate documents: a sustainable development strategy and a business strategy. In other companies both strategies are integrated into a single, coherent course of action. 

Each approach has its own benefits and challenges. However, what is more important is how management boards understand sustainable development and address its dimensions in the business context.

An organization’s commitment to sustainable development is reflected in ESG practices, covering environmental, social, and governance issues. Each of these areas covers a variety of topics that are crucial for setting a company's sustainability goals. Key environmental issues include climate change, biodiversity, pollution, water management, waste management, and the circular economy. While legal regulations may define the scope of necessary interventions, a strategic approach encompasses more than merely responding to current issues.

A strategic approach involves considering not only current events, but also potential future scenarios. Climate change, for example, poses specific threats to assets through unexpected weather phenomena and transition risks. By analyzing the key factors in the market and incorporating the financial dimension businesses can identify the areas of greatest importance. 

Financial analysis is a vital component of business operations. Financial considerations play a pivotal role in decision-making processes. It is important to evaluate the potential benefits and losses resulting from inaction. This can help reorient processes and align them with environmental topics. 

Each company requires natural resources in order to exist. Strategic planning involves an understanding of the availability of natural resources and the identification of alternatives to limited resources. Therefore, examining relevant topics within a broader context is essential for business transformation. It is imperative to comprehend the interdependencies between business goals and environmental issues in order to achieve a balanced approach that considers both risks and opportunities. It is becoming increasingly evident that environmental issues are being given greater prominence in public discourse. 

On the other hand, social issues, including those related to human rights in business, can be a particular challenge in terms of identification and translation into strategic terms. The social dimension encompasses issues such as diversity management, maintaining relationships with external stakeholders, and respecting human rights. 

The responsibility for employee relationship management lies with the HR department. The management of diversity is being reinforced by legal regulations and by observing social change. The identification of human rights violation risks is a relatively new area of management, and this involves understanding an organization’s external influences. This is further complicated by the fact that it extends beyond narrowly defined minimum standards and regulations. In the context of complex value chains and numerous relationships, it becomes imperative to assess potential risks.

The boundaries of organizational influence are expanding. In today's business landscape, enterprises are responsible not only for managing business processes that generate direct value, but also fostering relationships across entire value chains. Decisions made at the strategic level will have a direct impact on the achievement of business goals. 

Consequently, the roles of management boards are evolving, with boards bearing responsibility for defining the direction of the company and to integrating sustainable development into a cohesive vision for a sustainable and resilient organization. Regardless of the way in which strategic assumptions are expressed, the most important points of the decision map are the action plan, the ability to assess the current context and future scenarios, and the ability to design an appropriate response to the identified challenges. 

Strategic orientation today requires a sustainability-oriented approach to transform, rebuild, and enhance business resilience. 

Meet the expert

Agata Rudnicka is the Knowledge Management Director at the Responsible Business Forum and an adjunct at the Faculty of Management, University of Łódź