ESG-CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY AND ITS DEVELOPMENT IN THE LEGISLATION OF UKRAINE: SELECTED ANTI-CORRUPTION ASPECTS

Abstract

This article presents a theoretical and legal analysis of the development of the concept of corporate social responsibility (Environmental, Social, Governance, or ESG) in Ukraine’s national legislation, with a particular focus on its anti-corruption dimension (the «Governance» element). This research is of particular relevance in the context of martial law, post-war reconstruction and Ukraine’s European integration, which require Ukrainian businesses to adopt high standards of integrity, transparency and accountability. The ESG concept is closely aligned with legal standards relating to human rights, integrity, transparency, accountability and other moral and ethical principles and approaches. At the same time, the author emphasises that the ESG-concept is evolving from voluntary moral and ethical initiatives into a strategic instrument of public policy and a subject of systematic legal regulation. It is argued that anti-corruption measures in the corporate sector are a key criterion for social justice and investment attractiveness. The provisions of the Law of Ukraine «On the Prevention of Corruption» and the Law of Ukraine «On Public Procurement» are analysed, revealing a number of regulatory imbalances and gaps in the legal framework for ensuring anti-corruption compliance by legal entities. With a view to modernising the legislation, specific legislative measures are proposed. In particular, the paper justifies the need to introduce mandatory anti-corruption compliance for participants in all public procurement procedures, regardless of the current value threshold. It is proposed to amend Article 63 of the Law of Ukraine «On the Prevention of Corruption» by dividing the requirements for the content of a legal entity’s anti-corruption programme into mandatory («minimum requirements») and discretionary (optional) sections. This will allow for corporate discretion and local risk assessments to be taken into account. The importance of introducing public reporting by companies to civil society is also emphasised. It is concluded that, in the context of European integration, corporate law-making should be based on the fundamental principles of ESG, and the modernisation of legislation should transform corporate social responsibility into a clearly regulated system of legal instruments to achieve a balance between private and public interests.