Principles of Law and ESG Standards in Socially Responsible Entrepreneurship

Abstract

The paper provides a theoretical justification of ESG standards as a potential modification of the principles of law in establishing and running a socially responsible business. The framework of traditional discussions about the degree of state participation in the economy, as well as about the state as a subject of private law relations, can be expanded by posing a general theoretical question of practical implementation about what the boundaries and limits of interaction and mutual influence of legal and other social regulators are and how useful the cumulative effect of their regulatory impact for sustainable development is. These boundaries and limits constitute today a universally recognized prospect for the humanity. Being the principles of sustainable development in relation to the creation and conduct of business, ESG standards have the quality of social normativity, but currently they are at a stage of functioning when a uniform understanding of key terminology has not yet been achieved, which leads to different approaches to the formation and regulation of this area. The paper analyzes the concept of ESG standards, as well as their components in the aspect of comparison with the principles of law. The points of contact between ESG standards and private law principles take place due to their common nature as basic ideological prescriptions. It is shown that stability, system-forming character and functionality, being parameters of ESG standards, are extremely close to the principles of private law, they are consistent with them, which makes it possible to effectively combine various methods of normativer regulation of entrepreneurial activity that meets modern needs and expectations of society. This task is especially relevant for Russia, given the high regulatory burden on business, as well as negative stereotypes of mass consciousness in the perception of entrepreneurship as such.