Implementation of social responsibility and sustainability principles\nis considered capable of protecting companies from the adverse impacts\nof interconnected global crises in Indonesia. Based on information\nsourced from Lestari, a strong commitment to environmental, social, and\ngovernance aspects\u2014or ESG\u2014strengthens corporate positions compared to\ncompetitors.<\/p>\n
Jalal, Chairperson of the Advisory Board of Social Investment\nIndonesia, explained that strong CSR and ESG performance positively\nimpacts company resilience. This phenomenon arises from the internal\nprotections formed by consistent sustainability policies.<\/p>\n
\u201cBased on research conducted, companies with high CSR, ESG, and\nsustainability performance will produce an insurance effect,\u201d said Jalal\nduring the webinar Beyond ESG Score; What Are the Actual Benefits for\nCompanies in Conducting Shadow Rating, on Friday (8\/5\/2026).<\/p>\n
Although financial performance generally declines during crisis\nperiods, companies that maintain ESG programmes record more moderate\ncontractions. This group of companies is also predicted to experience\nfar more significant recoveries once conditions begin to improve.<\/p>\n
\u201cThey all decline, but the decline is not as deep as those with low\nCSR, ESG, and sustainability performance. When the bounce-back period\noccurs, meaning the crisis tends to end or pass, those with high CSR,\nESG, and sustainability performance will return to their original\npositions more quickly,\u201d Jalal stated.<\/p>\n
Jalal added that research categorises such companies as\n\u2018antifragile\u2019. These companies not only return to their starting point\nbut also have the potential to record superior performance after\nnavigating market turmoil.<\/p>\n
A strategic perspective in viewing ESG as an investment, rather than\nmerely a cost burden, is the key to corporate success. If seen as a\ncost, ESG budgets are typically cut immediately during crises; however,\nas an investment, long-term goals are pursued even in difficult\nconditions.<\/p>\n
\u201cBut they may need to rethink efficiency; they must reconsider\nalternative ways to achieve the set targets. So there is no reduction in\ntargets at all, no decline in performance whatsoever,\u201d said Jalal.<\/p>\n
New strategies and tactics need to be devised to face crisis\nchallenges without sacrificing established sustainability targets. This\nis done to maintain operational stability and stakeholder trust amid\npolitical and economic uncertainty.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/esg-commitment-provides-company-protection-during-global-crises-babel-insight-1778428364", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }