Abstract
The basic resource of an environmental, social, and governance (ESG) strategy is no longer capital, nor natural resource, but is data. Environment (natural or digital), society, and governance are rapidly changing due to the exponential increase of data. With data being ubiquitous and implicitus, the capability of managing it has become a critical factor. Data is represented in a variety of ways, is interpreted according to a specific context, and is subject to strict privacy restrictions. Data protection as well as data privacy issues are of major importance regarding the top ESG challenges that industries deal with. Supporting confidentiality and privacy toward the form ESG approach remains fundamental to refining a reasonable side regarding the progressively digitalized humanity we live in. Data breaches that have seen the light of day recently, such as those on Facebook, have highlighted the urgent need for data security as determined by ESG strategies. Businesses are called upon to better align with these strategies. They are called to link privacy with environmental, social, and governance strategies, which will be an ace for their viability and competitive advantage in the global market. ESG data is speedily boosting an industry of its own. There are many data providers as well as start-ups in the area. The role of data privacy in ESG is strongly connected with environment aspects and concerns data minimization, electronic waste reduction management, energy usage decrease. Data privacy in ESG is strongly connected with society aspects connected to individual privacy respect, privacy programs establishment, as well as personal data protection. Finally, data privacy in ESG is strongly connected with governance regarding privacy framework adoption, privacy program monitor, and privacy regulations compliment. Companies ought to pay significant attention to ESG achievements due to their enormous impact on corporate sustainability as well as to individual and social impact. Environmental, social, and governance (ESG) strategy related to data privacy improves transparency and minimize the risks regarding data management. Additionally, privacy and data ethics in ESG can create a significant economic benefit for enterprises. This chapter explores the principle of proportionality in the context of data protection, as part of a legal ESG strategy. Besides, to be ESG compliant means adhering to the principles of law to ensure responsible and sustainable prosperity.
Top1. Introduction
Environmental Social Governance (ESG) is defined by the business model that regulates the company to be socially accountable to all stakeholders, including society. Corporate strategy should focus beyond governance on the environment and society. The sustainable management of human resources is necessary to seek the achievement of positive environmental and economic results. Environmental, social and governance must be characterized by social responsibility in human resources (Lydenberg, 2013). The green recruitment of workers, their green training and their development, green remuneration and reward will play an important role in dealing with business issues, with the aim of their ecological operation and the protection of the environment and living organisms (Friede et al., 2015). As Crifo & Mottis (2016) report, investors who make impactful investments, consistent with environmental and social governance, increase long-term return benefits. Studies have shown that the high performance of companies and organizations in matters of sustainable development is related to the degree of employee satisfaction (Ginglinger, Megginson, & Waxin, 2011). Satisfied employees are more productive, resulting in increased business performance (Anastasiadou et al., 2022a; Belias et al., 2022; Charalampous & Papademetriou 2021; Papademetriou et al., 2022a;2022b;2023a;2023b).
The green training and development of employees according to environmental management standards and their awareness of sustainable development production issues is essential to promote organizational and ecological transformation. The social issues of our time concern society more and more due to the global pandemic of COVID-19 that preceded it (Papademetriou et al., 2022b). Companies are increasingly assessed for social issues, often also for how they work with the communities in which they operate and how they contribute to the well-being of these communities, in line with the rules of sustainable development and quality (Anastasiadou, 2015; Anastasiadou & Zirinoglou 2015; Anastasiadou et al., 2014). High performance in environmental, social and corporate governance issues enables organizations to improve their image and reputation and attract new prospective employees and buyers. Many organizations are at an early stage in terms of corporate social governance criteria. Human resources play an important role in achieving this change. Incorporating sustainability principles requires a change in corporate culture. The contribution of employees plays an important role in the activity of enterprises that seek to transform business operations (Anastasiadou et al., 2014; Stavropoulou,et al., 2023).