What does ESG mean?
ESG (Environmental, Social, Governance) is a response to the need to measure, compare, and report actions undertaken by an organization. It enables the assessment of a company’s impact on the environment, society, and the quality of management, based on specific indicators and data.
Managing an organization through the lens of ESG includes three main areas: environmental, social, and corporate governance.
“For us, ESG is a philosophy of sustainable organizational development that helps us monitor progress, implement innovations, manage risks more effectively, and build a competitive advantage,” says Magdalena Kaniewska, ESG Manager at Balma SA Furniture Factory.
Strategy vs. ESG policies — differences
A strategy is a clearly defined plan or an organization’s approach to achieving specific objectives and tasks. It includes decisions and actions that make it possible to use the company’s resources and capabilities in the best way, to increase the chances of growth and build a competitive advantage.
It can be said that a strategy is an organization’s roadmap — it sets the direction, priorities, and methods for achieving desired results. It involves analyzing internal and external factors, identifying opportunities and challenges, and developing an action plan that leverages strengths and minimizes areas requiring improvement.
A policy, on the other hand, is a set of principles and guidelines that steer decision-making within an organization. It defines the overall approach to specific issues and provides a framework for consistent, deliberate action. As a result, people in the organization apply a unified approach and work toward common goals.
In summary, an ESG strategy and ESG policies are two related but distinct concepts. A strategy defines the company’s long-term goals and how to achieve them, while policies are a set of principles and guidelines that support the implementation of those goals.
Types of policies
In business practice, ESG management includes, among other things, environmental issues, human rights, business integrity, employee relations, the supply chain, equal opportunities, and the impact of new technologies.
“At Balma, we have created one overarching Sustainable Development Policy, which is consistent with our Integrated Management System and with our ESG strategy for 2024–2026. Individual ESG areas are regulated by more detailed documents. These include: an Anti-Corruption Policy, a Human Rights Policy, an Anti-Mobbing and Anti-Discrimination Policy, and a Whistleblower Protection Policy. In the near future, we plan to implement a Safety Policy,” explains Magdalena Kaniewska.
She adds: “In addition, we have developed the Balma Code of Conduct and the Supplier Code of Conduct, which are a set of ethical principles that guide our day-to-day operations. Organizational matters, including benefits for Balma employees, are governed by separate documents, such as the Rules for Purchasing Furniture at a Discount or the Employee Referral Program Rules.”
Organizing ESG-related documentation serves, among other things, to systematize the knowledge and principles in force within the organization, which are important from the perspective of stakeholders. The most important materials that affect the work environment and the company’s surroundings are intended to explain why specific solutions are introduced and to show how everyone can incorporate sustainability-related elements into their daily tasks.
