Embedding ESG Policy in the Strategy of Global Healthcare Companies

Abstract

For the sustainable development of modern organisations, it is necessary to use the principles of social corporate responsibility, reflected in the Environmental, Social, and Governance (ESG) policy, and implement them into the strategy effectively. This is essential for global healthcare companies that should create value for patients regarding health and quality of life. The TASGRAM model provides a roadmap for integrating ESG policy into organisational strategy. It consists of the following constituents: thinking, analysing, strategy, goals, risks, actions, and monitoring. The first constituent – thinking makes it possible to assess the possibility of effectively integrating ESG policy into the company’s organisational design. At the analysing stage, it is advisable to study ESG policy to create the company's strategy using various analytical tools, such as PESTEL analysis, stakeholder matrix, etc. At the next constituent – strategy, the company needs to determine how to integrate ESG policy into the corporate and business strategies to reflect this in the company’s positioning and value creation for stakeholders. As part of the strategy, the ESG policy develops goals, and the risks that the company may face when introducing ESG policy into the company's strategy are identified and assessed. After this, the company takes appropriate actions to achieve ESG goals. At the final stage, the effectiveness of implementing ESG policy in the healthcare companies’ strategy is monitored. It is worth noting that the success of integrating ESG policy into healthcare organisations' strategies also depends on the corresponding organisational culture, organisational structure and efficient use of digital tools such as artificial intelligence, machine learning, cloud computing, big data, etc.