MODELING THE IMPACT OF CORPORATE CULTURE ON SHAPING ESG-ORIENTED MANAGEMENT IN AGRICULTURAL ENTERPRISES

Keywords: corporate culture, ESG management, agricultural enterprise, sustainable development, environmental responsibility, social justice, effective governance

Abstract

The purpose of this article is to develop a conceptual model of the impact of corporate culture on shaping ESG-oriented management in agricultural enterprises amid global sustainable development challenges, European integration processes, and Ukraine's wartime crisis. The author's contribution to addressing the research problem involves synthesizing theoretical approaches to corporate culture with ESG principles, tailored to the agricultural sector's specifics, and creating an adaptive integration model that accounts for local barriers such as resistance to change and resource limitations. The scientific novelty of the study lies in the integration of corporate culture elements with ESG principles (environmental responsibility, social justice, effective governance) through an original three-stage model. Grounded in a systemic approach, SWOT analysis, and case studies of leading European agribusinesses, the model dynamically simulates influences in crisis contexts, distinguishing it from traditional frameworks by emphasizing authenticity over formal compliance. It incorporates maturity levels for embedding sustainability via employee engagement, adapting global standards to pragmatic, survival-oriented practices that reduce greenwashing risks and enhance financial materiality in low-institutionalized settings. The methodological foundation combines qualitative and quantitative tools: systemic analysis for holistic integration, SWOT for barrier identification, and case studies from Europe to benchmark adaptations. The study identifies key cultural elements facilitating or hindering ESG implementation–such as leadership modeling sustainability values–and highlights barriers like wartime logistics disruptions and skepticism toward reporting without incentives. Practical significance emerges in actionable recommendations: for businesses, starting with "low-hanging fruit" like energy efficiency and labor safety to yield quick ROI; for the state, fiscal incentives and simplified national ESG standards piloted on 100–200 firms to attract 5–10 billion UAH in investments annually; for education and NGOs, 20–40-hour training programs reaching 5–10 thousand specialists yearly, plus regional hubs for knowledge exchange.

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Published
2025-11-10
How to Cite
Ovcharyk, S., & Pakhota, N. (2025). MODELING THE IMPACT OF CORPORATE CULTURE ON SHAPING ESG-ORIENTED MANAGEMENT IN AGRICULTURAL ENTERPRISES. Sustainable Development of Economy, (5 (56), 495-502. https://doi.org/10.32782/2308-1988/2025-56-68