| Course title | Environmental, Social and Corporate Governance |
| Course code | EkonM020 |
| Credit points (ECTS) | 3 |
| Total Hours in Course | 81 |
| Number of hours for lectures | 12 |
| Number of hours for seminars and practical classes | 12 |
| Number of hours for laboratory classes | 0 |
| Independent study hours | 57 |
| Date of course confirmation | 23/10/2024 |
| Responsible Unit | Institute of Economics and Finance |
| Course developers | |
| Dr. oec., prof. Gunta Grīnberga-Zālīte |
|
| There is no prerequisite knowledge required for this course | |
| Course abstract | |
| Students acquire in-depth specialized knowledge about the nature, functions and strategic management of the environmental, social and corporate governance (ESG) system in institutions and companies. The topics included in the course provide nuanced knowledge of the ESG regulatory framework at the national and international level, its system elements and tasks for the successful functioning of the company, as well as internal and external risk factors, their causes, and the synergy of the ESG system with the strategic management of the company's sustainable development.
The aim of the study course is to provide students with the necessary knowledge and competences for the development and strategic management of the ESG system. |
|
| Learning outcomes and their assessment | |
| Knowledge:
•In-depth understanding of the essence, functions, management of the ESG system, its importance both at the micro and macro level in the context of sustainable economic development – discussion. •Knowledge of the specifics of the regulatory framework for ESG system management at the national and international level – test. Professional skills: •Ability to independently analyse the ESG system as a whole and individual elements thereof, evaluate the problem areas of the functioning of the system, the causes of their occurrence - practical work - analysis of situations, discussion in groups. •Ability to purposefully apply the acquired knowledge to identify and eliminate specific ESG management problems in the company, developing a project for the implementation of the ESG management system for a particular company. Soft skills: •Ability to analyse, critically evaluate and interpret secondary information sources, provide logical arguments, proposals based on facts and specific research findings - practical work - analysis of situations, discussion in groups. •Ability to participate in the development and presentation of a target-oriented work - developing a project for the implementation of the ESG management system for a particular company and its presenting. •Competence: Ability to independently and critically analyze a specific ESG system management problem that exists in the company, conduct its in-depth analysis, take and argue decisions on the development of ESG principles and ensuring systemic functioning in synergy with the strategic management of the company's sustainable development - development and integration of the ESG management system implementation project into the company's sustainable strategy plan. |
|
| Course Content(Calendar) | |
| Lectures (12 hours)
1.Introduction to environmental, social and corporate governance (ESG), its discourses in Latvia, the European Union and the world. History and development of the ESG concept, its importance in the business environment. (2 hours) 2.Environmental governance: sustainability and climate change. The impact of climate change on business. Carbon footprint and emission reduction strategies. (1 hour) 3.Resource efficiency and sustainable use of resources. Waste reduction and recycling. Water and energy resource management. (1 hour) 4.Biodiversity and nature conservation issues. Ecosystem services and their economic importance. Sustainable management of natural resources. (1 hour) 5.Social responsibility and ethics in the work environment. Welfare and well-being of employees in the workplace. Promoting diversity and inclusive policies in the workplace. (1 hour) 6.Influence and involvement of social partners. Corporate social responsibility (CSR) and its initiatives. Building relationships with local communities. (2 hours) 7.Corporate governance and ethics in business. Responsibilities of the board of directors and governing bodies. Compliance with the principles of transparency in the management of the company. (2 hours) 8.Planning the implementation of a corporate governance system and synergy with the strategic management of the sustainable development of the company. Definition and integration of corporate responsibility activities into the company's sustainable strategy plan. ESG scores and reports. International ESG reporting standards and regulations. Corporate Sustainability (ESG) Report. (2 hours) Practical works (12 hours) 1.Getting acquainted with the G20/OECD Principles of Corporate Governance and Corporate Governance Code documents – analysis of their settings, discussion in groups. (1 hour) 2.Corporate sustainability (ESG) in the context of the UN Sustainable Development Goals and the European Green Deal: – a test on the issues related with the legal and regulatory framework. (1 hour) 3. Identification of environmental, social and management risks and their causes in enterprises – analysis of the situation, discussion in groups. (2 hours) 4.Responsible supply chain management: business and human rights in supply chains – analysis of the situation, discussion in groups. (3 hours) 5.Evaluation of ESG management reports for companies in different sectors – assessment of the topicality and quality of the information provided by them, discussion in groups. (2 hours) 6.Presentation of the ESG management system implementation project. Acquaintance with independently prepared portfolio materials and a developed project for a particular company. (3 hours) |
|
| Requirements for awarding credit points | |
| Exam. Accumulative assessment consisting of:
•Test on ESG legal and regulatory framework – 10%; •Practical group work during the semester – 20%; •Independent work, which results in the development of an ESG implementation project – 50% ; •Exam, in which ESG management system’s implementation project is presented – 20%. |
|
| Description of the organization and tasks of students’ independent work | |
| Research of study course materials, legal and regulatory documents, literature sources, preparing for the test on ESG legal and regulatory enactments.
Literature research and analysis in preparation for practical group work activities specifically aimed for the study of ESG problem situations. Systematization and supplementing of the information gathered in the study course by developing an ESG system implementation and management project for a specific company. |
|
| Criteria for Evaluating Learning Outcomes | |
| The overall mark of the study course depends on the cumulative assessment of: the test evaluation; evaluation of practical group-works; evaluation of the ESG implementation project (development and presentation).
A student can get a positive evaluation for the test, if at least 50% of the test questions are answered correctly. The group-work, the ESG management system implementation project and its presentation are evaluated in accordance with the evaluation procedure specified in the practical assignment. |
|
| Compulsory reading | |
| 1.Samans R., Nelson J. Sustainable Enterprise Value Creation : Implementing Stakeholder Capitalism Through Full ESG Integration. Palgrave MacMillan. Cambridge, MA, 2022., 283 p. E-grāmata, pieejama EBSCOhost datubāzē ar LBTU lietotājkontu: https://web-p-ebscohost-com.ezproxy.llu.lv/ehost/ebookviewer/ebook/bmxlYmtfXzM3MzM3ODRfX0FO0?sid=66bc30a6-3a9e-4d6b-b500-caa21e9a3d3c@redis&vid=6&format=EB&rid=1
2.Klein, E. Corporate Governance : Principles, Practices and ChallengesSeries: Business Issues, Competition and Entrepreneurship. Hauppauge, New York : Nova Science Publishers, Inc. 2016. E-grāmata, pieejama EBSCOhost datubāzē ar LBTU lietotājkontu: https://web.p.ebscohost.com/ehost/detail/detail?vid=3&sid=c2f3a5b3-6949-421a-8230-9bdcd6821612%40redis&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#AN=1258747&db=nlebk 3.G20/OECD Korporatīvās pārvaldības principi, 2018. Pieejams: www.tm.gov.lv/lv/media/2425/download 4.Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards. Pieejams: https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX:32023R2772 5.Bendl R., Bleijenbergh I., Henttonen E., Mills A. The Oxford Handbook of Diversity in Organizations. NewYork, NY: OxfordUniversityPress, 2017. 635 p. |
|
| Further reading | |
| 1.Alexander J. Financial Planning& Analysis and Performance Management. Hoboken:JohnWiley&Sons, 2018. 612 p.
2.ANO Vadlīnijas biznesam un cilvēktiesībām (UN Guiding Principles on Business and Human Rights).[n.d.]. Pieejams: https://www.undp.org/sites/g/files/zskgke326/files/migration/in/UNGP-Brochure.pdf 3.Baaij M., Reinmoeller P. Mapping a Winning Strategy: Developing and Executing a Successful Strategy in Turbulent Markets. United Kingdom; NorthAmerica: EmeraldPublishing, 2018. xxiv 248 p. 4.Bakari M. The Dilemma of Sustainability in the Age of Globalization. Lanham: Lexington Books, 2017, pp.225. 5.Dank N., Hellström R. Agile HR: Deliver Value in a Changing World of Work. UK: Kogan Page, 2021. 6.Faituša I. Iekšējā audita izvērtējums un pilnveidošanas iespēju analīze Latvijas valsts tiešajā pārvaldē un pašvaldībās: monogrāfija. Rīga: LU Akadēmiskais apgāds, 2019.188 lpp. 1.Ilgtspējīgas attīstības stratēģija Latvijai līdz 2030. gadam (Latvija 2030). Pieejams: https://www.mk.gov.lv/lv/latvijas-ilgtspejigas-attistibas-strategija?utm_source=https%3A%2F%2Fwww.google.com%2F 7.Korporatīvās pārvaldības kodekss. Pieejams: www.tm.gov.lv/lv/media/4138/download 8.Larcker D., Tayan B. Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences, 2nd edition, Published by Pearson FT Press, 2016, p.441. 9.Latvijas Klimata politikas pamatnostādnes 2021.-2050.gadam. Pieejams: https://ppdb.mk.gov.lv/wp-content/uploads/2024/05/II-sejums_Planosana_ELLE.pdf 2.Latvijas Nacionālais enerģētikas un klimata plāns 2021.–2030. gadam. Pieejams: https://likumi.lv/ta/id/312423-par-latvijas-nacionalo-energetikas-un-klimata-planu-20212030-gadam 10.Meier M. Business Etiquette Made Easy: The Essential Guide to Professional Success. NY: Skyhorse Publishing, 2020. 11.OECD Vadlīnijas multinacionālajiem uzņēmumiem (OECD Guidelines for Multinational Enterprises), 2011. Pieejams: https://www.oecd-ilibrary.org/governance/oecd-guidelines-for-multinational-enterprises_9789264115415-en 12.Social Enterprises and Their Ecosyctems in Europe: comparative synthesis report /Carlo Borzaga et al., Luxembourg: Publications Office of the European Union, 2020. 13.Vaynerchuk G. Crushing IT!: How Great Entrepreneurs Build Their Business and Influence and HowYouCan,Too. N.Y.: Harper – CollinsPublishers, 2018. 272 p. 14.Vides politikas pamatnostādnes 2021.–2027. gadam. Pieejams: https://likumi.lv/ta/id/335137-par-vides-politikas-pamatnostadnem-2021-2027-gadam |
|
| Periodicals and other sources | |
| 1.Dienas Bizness, nedēļas laikraksts: Latvijas biznesa avīze
2.iBizness, Rīga: Izdevniecība iŽurnāli. Pieejams: https://ibizness.lv/ 4.The Economist, London: Economist Newspaper Ltd. ISSN 0013-0613. Pieejams: http://www.economist.com/?sa_campaign=econsubs/europe/subspage/imglink. |
|
| Notes | |
| Academic Master's study programme "Sustainable Finance" | |