Application of ESG (Environmental, Social and Governance) criteria or environment, social and corporate governance in companies in Panama

Abstract

The research addresses the concepts of ESG (Environmental, Social and Governance) or Environment, Social and Corporate Governance in companies, with a particular focus on Panama. In recent years, ESG Standards have gained relevance in the business and financial world, and companies and investors are incorporating these criteria into their decision-making. The study aims to delve into the fundamentals of ESG criteria, their viability and their relationship with income tax in companies. It also analyzes the application of ESG in Panama and how they are used in the evaluation of the economic and administrative health of modern companies. The ESG criteria cover environmental, social and corporate governance aspects. Environmental factors assess a company's impact on the environment, while social factors consider relationships with employees, suppliers, customers, and contribution to the community. On the other hand, corporate governance refers to the structure and management practices of the company. These criteria are becoming increasingly important to investors as it has been shown that companies that perform well on ESG tend to have better financial performance over the long term. In Panama, although ESG criteria are an emerging issue, some leading companies in their sectors have begun to implement initiatives related to these criteria. Examples include policies to reduce the carbon footprint, corporate volunteer programs, and focuses on workplace safety and environmental stewardship. In addition, sustainability certification tools are being explored that could benefit companies that demonstrate good ESG performance.