INTEGRATION OF SOCIAL MISSION AND ESG PRINCIPLES IN RURAL ENTREPRENEURSHIP: MECHANISMS FOR ENHANCING TERRITORIAL SUSTAINABILITY AND COMPETITIVENESS
DOI:
https://doi.org/10.32782/ecovis/2024-3-4-2Keywords:
social mission, ESG principles, rural entrepreneurship, sustainable development, territorial sustainability, competitiveness, rural areasAbstract
The study explores the integration of social mission and ESG principles into rural entrepreneurship as a strategic approach to enhance territorial sustainability, resilience, and competitiveness. It argues that combining economic efficiency with social responsibility and environmental sustainability enables rural enterprises to develop human capital, strengthen local communities, preserve natural resources, and create long-term competitive advantages. The research identifies key mechanisms for integrating ESG and social mission into business practice, including strategic planning with sustainable development priorities, inclusion of ESG-related and social KPIs, adoption of circular economy models, energy-efficient and resource-saving technologies, transparent reporting according to international standards such as GRI and SASB, and active engagement of diverse stakeholders including local communities, authorities, investors, and partners. Findings demonstrate that enterprises applying these integrated strategies not only improve profitability, reduce operational, financial, and environmental risks, but also generate measurable social and ecological value for territories. The study emphasizes the synergistic effect of social mission and ESG factors in creating shared value, enhancing trust and cooperation among stakeholders, and fostering inclusive and sustainable local development. Furthermore, the paper provides a conceptual and methodological framework for transforming rural entrepreneurship toward socially responsible, environmentally conscious, and resilient business models, offering guidance for policymakers, investors, and practitioners seeking to implement sustainable development strategies in rural areas. By aligning economic, social, and ecological objectives, rural enterprises can achieve long-term stability, support local economic growth, increase attractiveness for domestic and international investment, enhance corporate reputation, and produce comprehensive added value for communities, ensuring sustained competitiveness, environmental stewardship, and social cohesion of rural territories.
References
Porter, M. E., & Kramer, M. R. (2011). Creating Shared Value. Harvard Business Review. URL: https://hbr.org/2011/01/the-big-idea-creating-shared-value
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The Impact of Corporate Sustainability on Organizational Processes and Performance. Management Science. DOI: https://doi.org/10.1287/mnsc.2014.1984
Mair, J., & Noboa, E. (2006). Social Entrepreneurship: How Intentions to Create a Social Venture Are Formed. In: Social Entrepreneurship. Palgrave Macmillan. URL: https://books.google.com/books?id=0LFR0VOmK98C&pg=PA121
Рурак І. Соціально-економічні фактори розвитку підприємництва у сільських громадах. Вісник Львівського національного університету природокористування. Серія: Економіка АПК. 2025. № 32. С. 181–187. DOI: https://doi.org/10.31734/economics2025.32.181
Zinchuk, T. O., Tarasovych, L. V., Yaremova, M. I., Usiuk, T. V., & Kovalchuk, O. D. (2021). Participation and Bridging: Involving Etrepreneurs in the Management of the EU Rural Economy. Studies of Applied Economics. 2021. № 39(5). DOI: https://doi.org/10.25115/eea.v39i5.4900
Зибарева О.В. Соціальна відповідальність бізнесу як джерело формування його конкурентних переваг. Економічні та соціальні детермінанти конкурентоспроможності підприємництва: колективна монографія / за заг. ред. Лопатинського Ю.М., Зибаревої О.В. Чернівці : Технодрук, 2023. 572 с., С. 45-80.
Зибарева О.В., Воронюк Т.А. Потенціал соціальної відповідальності підприємства в системі управління його конкурентоспроможністю. Вісник Чернівецького торговельно-економічного інституту. Економічні науки. 2022. Вип. І (85). С. 106-124. DOI: http://doi.org/10.34025/2310-8185-2022-1.85.09
Lopatynskyi Yu., Belei S., Kapelista I., Denysiuk L., Pavlyshyn M. The Effectiveness of the Management System in the Conditions of War and its Influence on the Development of Agribusiness. Review of Economics and Finance. 2023. Vol. 21. P. 932–940. DOI: https://doi.org/10.15587/1729-4061.2022.258652
Пшенична, М. (2023). Роль і місце ESG-інвестування в механізмі формування сталої конкурентоспроможності українських підприємств у повоєнний період. Scientific Collection «InterConf+», (29(139), 7–16. https://doi.org/10.51582/interconf.19-20.01.2023.001
Bilbao-Terol, A., Arenas-Parra, M., Cañal-Fernández, V., & Obam-Eyang, P. N. Multi-criteria analysis of the GRI sustainability reports: an application to Socially Responsible Investment. Journal of the Operational Research Society. 2018. Vol. 69 (10), P. 1576–1598. DOI: https://doi.org/10.1057/s41274-017-0229-0
Бобко Л. О., Мазяр А. В. Проблеми корпоративної соціальної відповідальності бізнесу в Україні. Ефективна економіка. 2019. № 5. URL: http://www.economy.nayka.com.ua/?op=1&z=7043 DOI: 10.32702/2307-2105-2019.5.37
Lee D. Corporate social responsibility of US‐listed firms headquartered in tax havens. Strategic Management Journal. 2020. Vol. 41(9). Issue 9. Р. 1547-1571. DOI: https://doi.org/10.1002/smj.3195
Finger M., Rosenboim M. Going ESG: The Economic Value of Adopting an ESG Policy. Sustainability. 2022. No. 14. Р. 13917. DOI: https://doi.org/10.3390/su142113917
Daugaard D., Ding A. Global Drivers for ESG Performance: The Body of Knowledge. Sustainability. 2022. № 14(4). Р. 2322. DOI: https://doi.org/10.3390/su14042322
Воронцова А.С., Агафонова Є.О., Білан С.А. Напрями координації нормативного регулювання відповідального (ESG) інвестування у світі: фрагментація чи уніфікація? Економіка та право. 2023. № 3. С. 91-100. DOI: https://doi.org/10.15407/econlaw.2023.03.091
Porter, M. E., & Kramer, M. R. (2011). Creating Shared Value. Harvard Business Review. URL: https://hbr.org/2011/01/the-big-idea-creating-shared-value
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The Impact of Corporate Sustainability on Organizational Processes and Performance. Management Science. DOI: https://doi.org/10.1287/mnsc.2014.1984
Mair, J., & Noboa, E. (2006). Social Entrepreneurship: How Intentions to Create a Social Venture Are Formed. In Social Entrepreneurship (pp. 121–157). Palgrave Macmillan. URL: https://books.google.com/books?id=0LFR0VOmK98C&pg=PA121
Rurak, I. (2025). Socio-economic factors of entrepreneurship development in rural communities. Bulletin of Lviv National Environmental University. Series: AIC Economics, 32, 181–187. DOI: https://doi.org/10.31734/economics2025.32.181
Zinchuk, T. O., Tarasovych, L. V., Yaremova, M. I., Usiuk, T. V., & Kovalchuk, O. D. (2021). Participation and bridging: Involving entrepreneurs in the management of the EU rural economy. Estudios de Economía Aplicada, 39(5). DOI: https://doi.org/10.25115/eea.v39i5.4900
Zybareva O.V. (2023). Sotsialna vidpovidalnist biznesu yak dzherelo formuvannia yoho konkurentnykh perevah [Corporate Social Responsibility as a Source of the Business Competitive Advantages]. In Yu.M. Lopatynskii, O.V. Zybareva (Eds.). Ekonomichni ta sotsialni determinanty konkurentospromozhnosti pidpryiemnytstva: kolektyvna monohrafiia [Economic and social determinants of entrepreneurial competitiveness: collective monograph]. Chernivtsi: Tekhnodruk, 572 p., pp. 45–80. [in Ukrainian].
Zybarevа О., Vоrоnyuk Т. (2022). Potentsial sotsialnoi vidpovidalnosti pidpryiemstva v systemi upravlinnia yoho konkurentospromozhnistiu [Potential of social responsibility of an enterprise in the system of its competitiveness management]. Visnyk Chernivetskoho torhovelno-ekonomichnoho instytutu. Ekonomichni nauky, vol. 1 (85). pp. 106–124. DOI: http://doi.org/10.34025/2310-8185-2022-1.85.09 [in Ukrainian].
Lopatynskyi Yu., Belei S., Kapelista I., Denysiuk L., Pavlyshyn M. (2023). The Effectiveness of the Management System in the Conditions of War and its Influence on the Development of Agribusiness. Review of Economics and Finance. Vol. 21. P. 932–940. DOI: https://doi.org/10.15587/1729-4061.2022.258652
Pshenychna, M. (2023). Rol i mistse ESG-investuvannia v mekhanizmi formuvannia staloi konkurentospromozhnosti ukrainskykh pidpryiemstv u povoiennyi period [The Role of ESG Investing in Shaping the Sustainable Competitiveness of Ukrainian Enterprises in the Post-War Period]. Scientific Collection «InterConf+», vol. (29(139), P. 7–16. DOI: https://doi.org/10.51582/interconf.19-20.01.2023.001 [in Ukrainian]
Bilbao-Terol, A., Arenas-Parra, M., Cañal-Fernández, V., & Obam-Eyang, P. N. (2018). Multi-criteria analysis of the GRI sustainability reports: an application to Socially Responsible Investment. Journal of the Operational Research Society, vol. 69 (10), P. 1576–1598. DOI: https://doi.org/10.1057/s41274-017-0229-0
Bobko, L. O. and Mazjar, А. W. (2019). Problemy korporatyvnoi sotsialnoi vidpovidalnosti biznesu v Ukraini [Problems of corporate social responsibility in ukrainian business], Efektyvna ekonomika, vol. 5, available at: http://www.economy.nayka.com.ua/?op=1&z=7043 DOI: 10.32702/2307-2105-2019.5.37
Lee, D. (2020). Corporate social responsibility of US‐listed firms headquartered in tax havens. Strategic Management Journal, vol. 41(9), issue 9, Р. 1547-1571. DOI: https://doi.org/10.1002/smj.3195
Finger M., Rosenboim M. (2022). Going ESG: The Economic Value of Adopting an ESG Policy. Sustainability. No. 14. Р. 13917. DOI: https://doi.org/10.3390/su142113917
Daugaard D., Ding A. (2022). Global Drivers for ESG Performance: The Body of Knowledge. Sustainability. No. 14 (4). Р. 2322. DOI: https://doi.org/10.3390/su14042322
Vorontsova A. S., Agafonova E. O., Bilan S. A. (2023). Napriamy koordynatsii normatyvnoho rehuliuvannia vidpovidalnoho (ESG) investuvannia u sviti: frahmentatsiia chy unifikatsiia? [Direction of regulatory coordination of responsible (ESG) investment in the world: fragmentation or unification?] Ekonomika ta pravo – Economy and law. No 3. Р. 91-100. DOI: https://doi.org/10.15407/econlaw.2023.03.091. [in Ukrainian].
