Perception of Sustainability and Strategies of Bulgarian Companies

Abstract

Purpose: The article aims to investigate how different understanding of ESG and/or CSR influence the adoption of formal ESG/CSR policy and relevant activities, and which factors are related to it as there is a gap in research on the formation of ESG/CSR strategy. Theoretical Framework: ESG strategies are one of the critical components for ensuring sustainable growth (Liang et al., 2022), but the understanding of the concept is not necessarily guaranteed. Moreover, despite the increasing interest in the topic, the literature concerning transition and emerging economies and ESG practices is still quite limited (Garcia et al., 2017). Design/Methodology/Approach: We surveyed various national companies with scalability about their perception and implementation of CSR/ESG and identified three clusters of enterprises based on their understanding of responsibility and sustainability. We analyzed the likelihood of adopting a CSR/ESG strategy for each type. Findings: The study reveals different elements which impact the process of forming a sustainability strategy in a transition economy and confirms the one of significant precondition is the company size. In addition, strong brands are seen as predictor of a strategy implementation. Research, Practical & Social Implications: We suggest that business which tend to address the dimension of sustainability have a comprehensive attitude toward strategy adoption and for effectively practicing sustainability awareness of the concept and all its dimensions is key. Based on the classification of the different companies their CSR/ESG activities could be analyzed. Originality/Value: The results show major factors of sustainability which are crucial to implement a formal sustainability strategy.