Cognitive model of the ESG transformation of the organization

Abstract

A universal model of ESG (Environmental, Social, Governance) transformation is proposed as a basis for developing an organization’s ESG strategy. Fuzzy cognitive logic technologies were used as the instrumental base of the study. A fuzzy cognitive map (FCM) of the organization’s ESG transformation has been developed with a substantiation of a set of parameters (concepts) in the environmental, social and managerial spheres. Based on the static analysis of the fuzzy cognitive model (FCM) and the calculation of its system indicators, it was determined that the factors of the level of ESG-corporate culture, ESG-motivation and integration into the practice of corporate management methodology of strategic management have the greatest positive impact on the target concepts and on the process of ESG transformation as a system. The system experiences a significant negative impact from the factor of resistance to changes in the organization. Collectively, these factors are identified as the main control actions for the organization’s ESG transformation.