Implementing ESG principles can significantly support domestic companies in building a sustainable reputation while positioning themselves for success in a competitive market.

In today’s fast-paced world of information and increasing trust challenges, reputation has emerged as a critical asset for businesses. While shaped by its unique dynamics, the Ukrainian market is deeply aligned with global trends.

This raises the question: “Are global reputation management trends relevant to today’s Ukraine?”

The latest Global RepTrak study reveals that 78% of consumers favor businesses with a strong reputation, 70% aspire to work for such companies, and 64% are willing to support them during challenging times.

Companies aiming for long-term success must go beyond generating profits—they are expected to positively impact the environment, society, and the economy. ESG principles (Environmental, Social, and Governance) have emerged as a critical framework in this endeavor.

ESG: Helping Companies Build a Resilient Reputation

ESG principles—encompassing Environmental, Social, and Governance considerations—are rooted in history and remain influential in shaping contemporary business strategies.

The core ideas behind ESG can be traced back to ancient civilizations, where ethical business practices were deeply embedded in cultural norms.

Today, ESG principles are closely tied to the 17 Sustainable Development Goals (SDGs), established by the United Nations General Assembly in 2015. These goals address a broad spectrum of social, economic, and environmental issues, providing a global framework for achieving sustainable development by 2030.

By prioritizing Environmental, Social, and Governance (ESG) factors, companies can actively contribute to achieving key Sustainable Development Goals (SDGs), including poverty eradication, environmental conservation, and fostering inclusive and sustainable economic growth.

The role of ESG factors is rapidly growing in Ukraine. A unique feature of Ukrainian businesses is their ability to integrate ESG principles with large-scale support for the Armed Forces of Ukraine and other initiatives that bolster the fight against Russian aggression.

When effectively communicated to the audience, such initiatives become a powerful tool for building trust. Marketing and PR professionals gain highly valuable opportunities to engage with target audiences and drive impactful messaging.

ESG principles play a foundational role in corporate communications. Adhering to these principles has become essential to meeting the reputation expectations shaped by the global community.

ESG is not merely a set of rules or reports; it is a dynamic approach that evolves alongside your business, capturing attention, enhancing company value, and deepening trust.

ESG: Relevance Amid War and Alignment with European Standards

In Ukraine, the war has created challenges in implementing ESG principles, but it has not diminished their importance.

In the EU and the US, ESG remains not only a recommended practice but an expected standard. Investors, consumers, employees, and society at large gravitate toward companies that demonstrate a conscious commitment to environmental sustainability, social responsibility, and effective governance.

The war in Ukraine does not negate ESG principles; instead, it underscores their importance. Companies that take a conscious approach to the long-term impacts of their actions are better equipped to navigate challenges and build a resilient future.

Companies with CEOs and management teams that prioritize open communication and actively address social and environmental issues in a fair and transparent manner tend to enjoy a strong reputation.

How a company treats its employees is critically important to society. This encompasses various aspects, such as ensuring workplace safety and health, providing fair compensation, and promoting equality and diversity among staff.

A robust commitment to employee health and safety fosters a secure work environment, enhancing both productivity and well-being. Fair wages ensure that all employees are compensated in alignment with their efforts and contributions to the company.

Moreover, adhering to principles of equality and diversity helps create an inclusive workplace where every employee—regardless of gender, race, nationality, or other differences—has equal opportunities for growth and career advancement. These factors collectively contribute to a positive corporate image and drive sustainable development for the company.

The Link Between ESG and Corporate Reputation

According to RepTrak, the correlation between reputation and ESG is an impressive 86%. It highlights that implementing ESG practices directly enhances a company’s image in the eyes of consumers, investors, partners, and other stakeholders. Such a high correlation underscores the diligent efforts of communication professionals to drive this impact.

Companies with low ESG performance face significant challenges in attracting consumers. Studies reveal that only 10% of consumers are willing to purchase products or services from such companies. It indicates that, for most consumers, price and quality are not the only priorities—ethical principles and sustainable practices underlying a company’s operations also play a critical role.

For instance, companies that ignore environmental standards, engage in unethical labor practices, or fail to uphold corporate ethics risk losing consumer trust—and with it, their reputation. Modern consumers are increasingly choosing brands that align with their values and demonstrate a commitment to sustainability.

The Power of Reputation: When Trust Outweighs Gold

A strong reputation doesn’t just enhance a company’s image—it serves as the foundation for business success and growth. It builds trust among customers, partners, and investors, fostering loyalty and developing long-term relationships.

According to the Edelman Trust Barometer 2024, businesses are most trusted for driving innovation, with 59% of respondents expressing confidence in this area. Over the past decade, the demand for partnerships between governments and businesses to foster innovation has grown significantly. This trend is also evident in Ukrainian business, where there is a strong focus on innovative solutions, especially in the challenging context of war.

Investing in innovation addresses pressing challenges and helps companies stand out in the market, build a loyal audience, and strengthen trust.

Ukrainian companies, in turn, increasingly recognize the importance of reputation and adopt practices to enhance it.

Reputation management is gradually evolving from a service function to a strategic management role for leading Ukrainian companies. My colleagues in the PR industry would undoubtedly agree that corporate communications in Ukraine are becoming more intentional, guided by the principle: it’s not how much we say, but what we say—and we focus on what we actually implement.

The shift toward meaningful rather than merely frequent messaging is becoming increasingly evident with each passing year.

The Edelman Trust Barometer confirms that 95% of Chief Operating Officers believe the communications function fosters effective partnerships. Additionally, 98% of respondents recognize the overall value of communications for their organizations, while 99% highlight its role in strengthening internal connections within the company.

The Importance of Partnership and Analytics

In today’s world, ESG principles are becoming increasingly vital for companies striving for sustainable development and a strong reputation. Investors, clients, and other stakeholders emphasize evaluating businesses based on their ESG commitments.

RepTrak research shows that 86% of consumers expect companies to adhere to ESG principles, while 75% of investors consider ESG factors crucial when making investment decisions.

Reputation is not just a passing trend but a strategic asset that can significantly impact profitability, customer loyalty, and business resilience. Adapting global trends to the Ukrainian context can empower local companies to build a strong reputation and achieve lasting success in the market.

Natalia Ulynets, Head of the EBA Marketing and PR Committee, CEO of Perfect PR, guest lecturer at UCU Business School and Kyiv Mohyla Academy