Compliance as a Tool for Implementing an ESG Strategy by the Example of Companies in the Manufacturing Sector

Nowadays, one of the key factors of success in business is a development and implementation of the effective compliance system. A competent compliance system helps to increase the investment attractiveness of a company and ensures successful functioning in rapidly changing market conditions. However, simple implementation of a compliance system does not guarantee full conformity with market requirements. To ensure a company's competitiveness, it is necessary to take ESG standards into account when building a compliance system. This allows companies to demonstrate their commitment to the principles of social responsibility and gain an advantage over competitors whose activities are not based on ESG principles. In the scope of this work there is considered the problem of implementation and realization of an ESG-strategy in companies of production sector with the use of compliance tools. The author analyzed the theoretical foundations of the concept of ESG, its regulatory framework and existing international standards in this area. The author also analyzed the policies, strategies and non-financial reporting of companies, which showed the correlation between the maturity of the compliance system and the level of implementation of ESG principles in the activities of companies. The purpose of the study is to develop approaches to the implementation of ESG-compliance and analyze the benefits of implementing an effective compliance system in the context of sustainable development of the company. The author emphasizes the theoretical similarity of these two institutions on the example of their implementation in specific companies. Practical significance of the graduate qualification work consists in the possibility of using its results for implementation of ESG-compliance system in the companies of the production sector and monitoring the effectiveness of this system.