Analysis reveals competencies drive responsible leadership for sustainability in business environments, suggesting ESG integration benefits stakeholders.
The volatility, uncertainty, complexity, and ambiguity of business environments demanded that top management in companies develop a unique set of skills or competencies. These competencies must be aligned with the company's intention to achieve its goals and objectives. Companies are required to avoid traditional, outdated approaches to remain relevant in the system by considering a broader range of factors beyond profit maximization. This includes sustainability, a comprehensive concept that covers various dimensions, including environment, social, and governance (ESG). High ESG practises are attractive to potential investors, customers, and new talents, and they even sustain the loyalty of the employees. These can only be achieved by having competent top management, a reflection of the cognitive style of the leader pertaining to ESG. A competent leader with a sense of responsibility would be better at addressing ESG issues and strategizing relevant ESG initiatives to meet companies’ sustainability goals.
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