Transformation of business social responsibility: from CSR to ESG

Abstract

The article substantiates the transformation of business social responsibility from traditional corporate social responsibility (CSR) towards an ESG-oriented management model under the influence of the growing importance of sustainable development principles, changing stakeholder expectations, and increasing requirements for corporate transparency and the formalisation of sustainability-related disclosures. Particular attention is paid to the specific features of this process in Ukraine, where the development of responsible business practices is simultaneously influenced by wartime challenges, the need to ensure the economic and organisational resilience of enterprises, and the deepening of European integration. The purpose of the article is to identify the main parameters and directions of the transformation of business social responsibility from traditional CSR to an ESG-oriented model and to substantiate the conceptual levels and specific features of this process in the Ukrainian business environment. The study is conceptual and analytical in nature and is based on a structured comparative analysis of scientific publications, regulatory and methodological documents, and the results of the authors' previous research. The systematisation of the analysed characteristics made it possible to identify ten parameters of social responsibility transformation: target orientation, nature of responsibility, place within the management system, stakeholder engagement, implementation tools, level of formalisation, measurability of results, reporting practices, integration into risk management, and time horizon. Based on these parameters, five general directions of transformation were identified: from reactivity to proactivity; from fragmentation to strategic integration; from predominantly situational to systematic stakeholder engagement; from limited standardisation of performance assessment to measurability and accountability; and from project-based orientation to long-term resilience and value creation. The conceptual approach to the transformation of business social responsibility was further developed by substantiating three levels of its managerial integration: traditional CSR → strategic CSR → ESG-oriented model. It is established that these levels do not represent a mandatory chronological sequence in the development of an enterprise but rather reflect an increasing degree of strategic integration, formalisation, and measurability of social responsibility within corporate management. Two specific contextual factors shaping this transformation in Ukraine are identified: wartime challenges and the associated need to strengthen business resilience, as well as European integration accompanied by increasing requirements for sustainability-related disclosures. The impact of wartime challenges on the ESG priorities of Ukrainian businesses has been specified: the heightened importance of energy and operational resilience in the environmental dimension, the preservation of human capital in the social dimension, and crisis management and business continuity in the governance dimension. The practical significance of the results lies in the possibility of using the proposed system of parameters and comparative matrix as an analytical basis for a preliminary assessment of the degree to which social responsibility is integrated into corporate management and for identifying further directions for the development of ESG-oriented business practices.