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In a rapidly changing business landscape, an organization’s success is largely determined by the quality of its leadership.

Have you ever considered that your team’s success today may not necessarily guarantee success tomorrow?

This is where choosing a leadership training vendor that is not only reliable, but also relevant to today’s challenges becomes critically important.

As a business owner, HR leader, or decision-maker, you naturally want to ensure that every leader in your organization is equipped with capabilities that go beyond technical skills—leaders who are adaptive, strategic, and empathetic.

This article will help you understand what to consider when selecting a leadership training vendor, and why prasmul-eli is the right partner to support leadership transformation in your organization.

Why Is Choosing the Right Leadership Training Vendor Important?

Many companies now realize that leadership training is no longer just an additional program, but a strategic necessity.

According to the Global Leadership Forecast 2023 by DDI, only 40% of organizations feel that their leaders are prepared to face challenges over the next five years. As a result, collaboration with the right training vendor has become increasingly critical.

An experienced leadership training vendor does more than deliver theory. They are able to identify competency gaps and design programs based on real organizational needs.

They can also serve as catalysts for cultural transformation and innovation within the workplace.

Key Criteria of a High-Quality Leadership Training Vendor

According to the LinkedIn Workplace Learning Report 2024, 57% of global organizations now prioritize investment in leadership training focused on soft skills rather than purely technical hard skills.

However, not all leadership training vendors are able to meet these expectations. In an increasingly competitive training ecosystem, choosing the right vendor is essential to ensure that the program delivers real impact rather than becoming a mere formality.

A high-quality vendor not only masters the subject matter, but also understands your business context, applies adaptive learning approaches, and leverages technology effectively.

So, how can you identify a truly outstanding vendor?

1. Proven Training Methodology

A quality training vendor always relies on methodologies that are proven in practice and results-oriented.

Blended learning is one of the most commonly used approaches, as it combines face-to-face sessions, online learning, and self-directed exercises that complement one another.

In addition, experiential learning methods such as real case studies, simulations, and group discussions have been shown to significantly improve knowledge retention.

Training that focuses solely on theory tends to have only short-term impact.

Therefore, it is important to choose a vendor that delivers practice-based training, where participants not only understand concepts but are also able to apply them to real workplace challenges.

The combination of theory and practice helps develop resilient and adaptive leaders.

2. Tailored to Organizational Needs

A strong vendor will not offer generic training packages to all clients.

Instead, they begin the engagement with a thorough needs assessment to understand your organization’s context—its structure, culture, leadership challenges, and long-term strategic objectives.

The results of this assessment are then used to design highly relevant training modules.

Customized training is more targeted and delivers higher retention rates.

This is crucial because the needs of a manufacturing company differ significantly from those of a technology or retail company.

Therefore, vendors who are flexible in adapting training content to your organizational context will generate far more meaningful impact.

3. Experienced Instructors and Facilitators

The quality of training is heavily influenced by the competence of its facilitators.

Experienced facilitators are not only effective communicators, but also skilled at reading group dynamics and encouraging meaningful discussion.

They typically have experience working with a wide range of organizations, from public institutions to multinational corporations.

Credible facilitators are able to share real-life insights, not just textbook theory.

This is particularly important for engaging participants across levels, including first-time managers, supervisors, and C-level executives.

You can assess facilitator credibility through their portfolio, client testimonials, and learning approaches.

4. Integration of Technology in Learning

In today’s digital era, training that does not leverage technology quickly becomes outdated.

Modern vendors provide digital learning platforms that allow participants to access materials anytime, track learning progress, and interact through online forums.

Some even offer dedicated dashboards for HR teams to monitor engagement and participant performance.

Technology is not merely a supporting tool—it significantly accelerates the learning process.

Through analytics integration, organizations can assess training effectiveness in real time and adjust strategies as needed.

This flexibility is especially important for companies with geographically dispersed teams or hybrid working arrangements.

Benefits of Working with a Professional Leadership Training Vendor

LinkedIn Learning users have shown significant increases in leadership course engagement, including a 55% rise in course views over the past 18 months—reflecting growing interest in online learning and professional vendors.

This data shows that partnering with a professional leadership training vendor is not merely an investment of time and money, but a way to accelerate cultural and performance transformation within your organization.

1. Time and Resource Efficiency

Developing a leadership program from scratch requires significant time and resources, particularly if you do not have a dedicated internal talent development team.

Professional vendors provide a practical solution by offering proven materials without the need to build curricula from the ground up.

In addition, experienced vendors can modularize content based on organizational needs.

You can select the most relevant modules while entrusting the rest to the vendor—resulting in faster, more streamlined, and more cost-effective training compared to internal development.

2. Objective External Insights

Working with an external vendor gives you access to fresh perspectives that are not constrained by internal organizational dynamics.

Vendors can help identify blind spots, address structural weaknesses, and provide recommendations based on cross-industry experience.

This perspective is especially valuable when organizations face cultural stagnation or internal conflict.

With an objective approach, vendors can act as change catalysts—opening new strategic conversations without internal bias that may hinder innovation.

3. Improved Employee Retention

High-quality leadership training has been proven to increase team engagement and loyalty.

Employees who are given opportunities to learn and grow professionally under supportive leadership tend to be more satisfied and highly motivated.

Gallup research shows that well-led teams have higher retention rates and sales productivity up to 18% greater.

Furthermore, Gallup found that organizations achieving 70% or higher employee engagement—more than three times the global average—do so through effective leadership strategies, communication, manager development, and accountability.

When your organization partners with a professional vendor, the likelihood of achieving these outcomes increases, as training is designed not only to transfer knowledge but also to build strong team relationships.

4. Accelerating the Future Leadership Pipeline

One of the greatest organizational challenges is preparing not only today’s leaders, but also the next generation.

Experienced vendors can offer programs that strengthen leadership pipelines, such as talent identification, advanced coaching, and promotion readiness modules.

As a result, organizations have leaders who are ready when promotion opportunities or strategic needs arise.

With systematic and continuous programs, you can ensure leadership continuity and sustain a healthy organizational culture at all levels.

Tips for Starting a Partnership with a Leadership Training Vendor

In the Blanchard HR/L&D Trends 2024 survey, many L&D practitioners cited key challenges such as misalignment between training strategies and business objectives, as well as weak integration between talent development and organizational goals.

Therefore, it is important to have a structured initial strategy before entering a leadership training partnership, ensuring that your investment delivers measurable, impactful, and long-term results.

1. Conduct an Internal Assessment

The crucial first step is to conduct an internal assessment.

You need to identify leadership competencies that require improvement, based on performance evaluations or 360-degree feedback.

This process helps you pinpoint the most urgent gaps to be addressed through training.

By understanding actual needs, you can avoid overly generic programs and clarify internal expectations—making it easier for vendors to design training aligned with your organizational context.

2. Define Desired Outcomes

Before starting the partnership, it is essential to clearly define the desired outcomes of leadership training.

Do you want to improve cross-team collaboration? Strengthen decision-making capabilities? Or enhance organizational readiness for change?

Defining outcomes explicitly helps vendors design focused and relevant modules.

It also makes it easier for you to measure post-training success, both in terms of individual performance and overall team productivity.

3. Involve Key Stakeholders

Vendor selection should not be handled by a single department alone.

Involve key stakeholders such as HR, direct supervisors of participants, and other strategic units.

This ensures that training initiatives align with broader business objectives.

Stakeholder involvement also fosters shared ownership of the program, increasing participation and support throughout the training process while strengthening cross-functional collaboration.

4. Run a Pilot Program

Before rolling out full-scale training, it is advisable to conduct a pilot program.

The pilot allows you to evaluate content effectiveness, facilitator style, and participant reception of the vendor’s approach.

It also provides early data to refine modules, delivery formats, or training duration before making a larger investment.

This approach minimizes risk and increases the likelihood of a successful long-term partnership.

Is It Time to Choose the Right Vendor?

Choosing the right leadership training vendor is not merely a technical decision—it is a long-term investment in human capital and organizational culture.

Amid rapid and complex change, strong leadership is the foundation of business sustainability.

If you are looking for a strategic partner to design and deliver leadership training that is relevant, flexible, and impactful, prasmul-eli is ready to support you.

Visit prasmul-eli or contact our team. Let us work together to develop future-ready leaders who are prepared to meet the challenges of tomorrow.

Amid increasing pressure from regulators, investors, and consumers for more responsible business practices, the terms ESG and CSR are being mentioned more frequently.

However, did you know that although they may seem similar, ESG and CSR actually differ in their approach, objectives, and impact on business performance?

Many companies are still confused about the distinction between ESG and CSR, and even use the two interchangeably.

In fact, a proper understanding can unlock greater strategic opportunities in building a sustainable business.

This article will help you understand what ESG and CSR are, how they differ, and whether ESG can truly replace CSR.

We will also discuss why it is important for modern companies to start adopting an ESG approach and how you can find the right strategic training partner for this transformation.

What Is ESG?

In recent years, the concept of ESG (Environmental, Social, and Governance) has gained increasing attention in the global business landscape.

The PwC Global Investor ESG Survey 2024 shows that 94% of investors want companies to disclose ESG information in a format that can be compared globally.

This proves that ESG is not just a passing trend, but has become a key parameter in assessing business sustainability and resilience in the eyes of investors and stakeholders.

It is therefore unsurprising that companies that take ESG implementation seriously tend to demonstrate more stable long-term performance and stronger market reputations.

ESG is a framework used to evaluate the extent to which a company considers environmental, social, and governance aspects in its operational activities.

More broadly, ESG reflects a business approach that is not solely profit-oriented, but also takes into account long-term impacts on the planet and society.

ESG has now become a critical foundation for companies seeking sustainable transformation, particularly in the face of climate change, regulatory pressure, and increasingly ethics-conscious consumers.

1. Environmental

The environmental aspect of ESG refers to how companies manage their impact on ecosystems and the planet.

This includes issues such as carbon emissions, energy use, waste management, natural resource conservation, and biodiversity protection.

Companies that are proactive in this area typically undertake initiatives such as transitioning to renewable energy, adopting environmentally friendly production technologies, and designing products based on circular economy principles.

For example, manufacturing companies may set targets to reduce their carbon footprint by up to 50% within five years through energy efficiency initiatives and the use of recycled raw materials.

These actions not only help mitigate environmental risks, but also improve operational efficiency, reduce long-term costs, and strengthen the company’s reputation as a responsible industry player.

2. Social

The social component of ESG assesses how a company treats its human resources, including employees, local communities, consumers, and supply chains.

Key areas of focus include occupational health and safety, human rights, diversity and inclusion, talent development, and contributions to surrounding communities.

Companies that excel in social aspects tend to enjoy higher employee loyalty and more positive public relationships.

For instance, companies that implement inclusive parental leave policies, digital upskilling programs for employees, or provide access to healthcare services for surrounding communities demonstrate a strong commitment to sustainable social values.

In today’s era of information transparency, companies that neglect social aspects risk facing public pressure that can directly impact brand image and consumer trust.

3. Governance

Governance within ESG emphasizes the importance of integrity in corporate management.

This includes transparency in reporting, independent board structures, strong audit systems, risk management, anti-corruption practices, and compliance with applicable laws and regulations.

Good governance not only reflects professionalism, but also serves as an assurance that the company is managed fairly and ethically.

For example, companies that regularly publish ESG reports verified by third parties, enforce strict internal codes of conduct, and maintain secure and open whistleblowing systems are more likely to earn investor trust.

Strong governance is a critical foundation for accountability and long-term stability, particularly in navigating market uncertainty and legal challenges.

What Is CSR?

Corporate Social Responsibility (CSR) has long been the primary approach for companies to demonstrate concern for environmental and social issues.

According to the KPMG Survey of Sustainability Reporting 2024, more than 80% of large global companies still run CSR initiatives as social contributions that are separate from their core business activities.

However, amid the global shift toward long-term sustainability, CSR has come under scrutiny for being less strategic compared to more integrated approaches such as ESG.

Nevertheless, CSR remains relevant, especially for companies at the early stages of their sustainability journey, due to its flexible nature and direct impact on communities.

CSR refers to a company’s voluntary commitment to addressing the social and environmental impacts of its business operations.

Unlike ESG, which integrates sustainability into the core business model, CSR is more commonly manifested through philanthropic activities and standalone social initiatives.

Although CSR does not directly influence business decision-making, it plays an important role in building corporate image, strengthening community relationships, and generating public goodwill.

1. Community Social Programs

One of the most common elements of CSR is social programs aimed at improving the quality of life of surrounding communities.

These may include donation programs, disaster relief, construction of educational facilities, or the provision of free healthcare services.

Such programs are typically conducted periodically and managed by CSR divisions or in collaboration with non-profit organizations.

For example, many FMCG companies in Indonesia actively develop clean water facilities in rural areas or run nutrition programs for children.

While the impact is often local, these initiatives help enhance the company’s reputation as a socially responsible organization and directly support social development.

However, because such programs are rarely linked to core business activities, their long-term impact on business performance is often limited.

2. Environmental Awareness Initiatives

CSR is also commonly implemented through environmentally friendly activities.

These include tree planting, plastic reduction campaigns, recycling programs, and the use of biodegradable packaging.

The objective is to reduce the company’s negative environmental impact while raising environmental awareness among consumers and employees.

For instance, large retail companies may run “Bring Your Own Bag” campaigns and offer incentives to customers who bring reusable shopping bags.

Although these initiatives may be small in scale, they are effective in reinforcing brand values and demonstrating environmental concern.

The challenge is that without integration into core business strategy, such initiatives are often viewed as side projects that are easily abandoned when budgets are tightened.

3. Employee Volunteering

Many companies run CSR programs that involve employees as volunteers in social activities.

These may include beach clean-ups, teaching in underserved areas, or mentoring local MSME entrepreneurs.

In addition to generating direct social impact, such programs help strengthen internal solidarity and enhance employee engagement.

Employee involvement in social activities can also reinforce an inclusive and human-centered corporate culture.

However, these programs are typically episodic and not directly linked to the company’s long-term objectives.

This is one of the reasons why CSR is increasingly seen as needing to evolve into a more comprehensive approach like ESG, which emphasizes the integration of social values across all business functions.

Key Differences Between ESG and CSR

Although ESG and CSR are often equated due to their shared focus on sustainability, their approaches differ fundamentally.

Understanding these differences is crucial to ensuring that a company’s sustainability strategy is not merely symbolic, but delivers tangible business impact.

As regulatory and market pressure to adopt sustainable business principles increases, companies can no longer rely solely on CSR as their primary form of social responsibility.

ESG offers a more strategic, measurable, and globally relevant framework.

The following are the key differences between ESG and CSR that you need to understand:

1. Strategic Orientation

CSR is generally voluntary and focused on building corporate reputation.

Many organizations implement CSR programs to enhance public image, such as through donations or social campaigns.

However, these programs are often not directly linked to core strategy or key performance indicators.

In contrast, ESG adopts a far more strategic approach.

ESG is not merely a social project, but a long-term sustainability and risk management framework embedded in business decision-making.

Investors use ESG to assess a company’s resilience to environmental, social, and governance risks that may affect economic value.

2. Measurement and Reporting

One of the main challenges of CSR implementation is the lack of standardized reporting.

Many CSR programs do not have clear success indicators or structured reporting systems.

This makes impact measurement difficult and leaves CSR vulnerable to being perceived as unsustainable goodwill activities.

In contrast, ESG is supported by globally recognized reporting frameworks.

Standards such as GRI (Global Reporting Initiative), SASB (Sustainability Accounting Standards Board), and TCFD (Task Force on Climate-related Financial Disclosures) enable companies to produce sustainability reports that are comparable, verifiable, and externally assessed.

This makes ESG a credible communication tool for investors and regulators.

3. Time Horizon

CSR tends to focus on short-term impact, such as building relationships with local communities or improving public perception of the brand.

While this can be appropriate in certain situations, short-term approaches are often insufficient to address complex sustainability challenges.

ESG, on the other hand, emphasizes long-term sustainability.

By integrating environmental, social, and governance considerations into strategic planning, companies can mitigate future risks, create sustainable value, and ensure long-term business continuity.

4. Stakeholder Scope

CSR programs typically target the general public or local communities as a form of social contribution.

The primary focus is on external impact, often without active involvement from internal stakeholders such as investors or regulators.

ESG, by contrast, considers the interests of all parties within the business ecosystem, including investors, consumers, business partners, regulators, and employees.

This approach requires broader engagement in defining objectives, implementation, and impact evaluation.

Comparison Table: ESG vs CSR

Understanding these differences will help you design a sustainability strategy that is more focused, measurable, and aligned with global expectations for responsible business.

Can ESG Replace CSR?

Many stakeholders ask whether ESG will replace CSR. The answer is: not entirely—but ESG can be seen as an evolution of CSR.

ESG carries forward the spirit of CSR—social and environmental responsibility—while elevating it to a more strategic, measurable, and integrated level.

CSR remains relevant as the foundation of corporate culture and values, but ESG provides a stronger framework for embedding sustainability into business strategy, decision-making, and investor reporting.

ESG transforms sustainability into a source of competitiveness, not just goodwill.

Global companies such as Unilever and Nestlé, as well as Indonesian companies like Bank BCA and Pertamina, have demonstrated how transitioning from CSR to ESG can create real business advantages.

They not only contribute socially, but also improve efficiency, reduce risk, and build long-term reputation.

Is It Time for You to Partner Strategically in ESG Implementation?

In a business world increasingly driven by transparency, accountability, and sustainability, developing an ESG strategy is no longer optional—it is essential.

Investors now prefer companies with clear, globally accountable ESG approaches.

This signals that ESG has moved beyond the traditional role of CSR to become a core framework for strategic decision-making.

ESG not only addresses reputational needs, but also creates long-term value by embedding sustainability across the entire business value chain.

If you want to lead your organization toward a more structured, strategic, and impactful sustainability journey, now is the time to equip yourself and your team with the right knowledge and capabilities.

Prasmul-eli presents ESG for Leaders: Lead The Change or Be Left Behind, a program designed for decision-makers who want to turn ESG into a competitive advantage.

Do not merely follow change—lead the transformation.
Register now and become a change leader in the era of sustainable business.

In the modern business era, sustainability is no longer merely an option, but a strategic necessity. Investors, customers, regulators, and employees are now placing greater attention on a company’s social and environmental responsibility.

This has positioned ESG (Environmental, Social, and Governance) as a new compass for navigating long-term growth.

The question is, what do examples of ESG implementation in companies actually look like, and how can you begin?

Many companies are still confused about what constitutes an ESG strategy, how to measure it, and more importantly, how to implement it in real business operations.

This article will help you understand the ESG concept comprehensively, complete with practical examples and globally recognized standards.

If you are a business leader, decision-maker, or professional who wants to steer your organization toward a more sustainable direction, this article provides practical guidance that you can directly adapt.

What Is ESG in a Company?

ESG is a framework used to measure an organization’s sustainability impact and performance across three main areas: environmental (Environmental), social (Social), and corporate governance (Governance).

On the Environmental side, companies focus on issues such as carbon emissions, waste management, energy efficiency, and natural resource conservation.

The Social aspect highlights the company’s relationships with employees, local communities, and the supply chain.

Meanwhile, Governance relates to corporate governance practices, transparency, business ethics, and decision-making structures.

By implementing ESG, your company not only demonstrates responsibility, but also creates added value through efficiency, innovation, and increased public trust.

What Are Examples of ESG Actions?

A study published in the International Review of Economics & Finance (2024) found that every increase in a company’s ESG score raises Economic Value Added (EVA) by 0.63% and reduces bankruptcy risk by 0.32%, significantly enhancing corporate resilience.

Meanwhile, a broad meta-analysis by NYU Stern (2023) shows that 58% of more than 1,000 studies found a positive correlation between ESG performance and corporate financial outcomes, while only 8% identified a negative impact.

It is therefore unsurprising that more companies are taking concrete steps across the three main ESG pillars: environmental, social, and governance.

However, many business actors are still unsure what real ESG commitment looks like in practice.

In this section, you will find real-world examples of ESG actions that can be applied across various types of companies, along with their strategic benefits.

1. Environmental Practices

ESG actions in the environmental aspect focus on how companies manage their impact on ecosystems.

One of the most popular initiatives is reducing greenhouse gas emissions, for example by transitioning to renewable energy sources such as solar power or biomass.

In addition, many companies have implemented waste recycling systems to reduce landfill waste while improving production efficiency.

Another equally important step is reducing carbon footprints through environmentally friendly transportation and supply chain optimization.

The use of electric vehicles for internal operations or collaboration with green logistics vendors is now becoming a trend.

Beyond environmental friendliness, these actions have been proven to reduce long-term operational costs.

For example, Unilever has successfully saved millions of dollars annually after implementing energy efficiency technologies and sustainable packaging strategies across its production lines.

2. Social Practices

In the social dimension, companies can demonstrate responsibility through various initiatives that support employee well-being and the wider community.

Examples include workplace mental health programs, which are increasingly important amid the pressures of the digital era.

In addition, skills training for local communities, such as digital literacy or entrepreneurship programs, represents a tangible form of social contribution.

Equally important, companies must ensure inclusive and discrimination-free work environments.

This includes fair recruitment policies, diversity training, and the provision of disability-friendly facilities.

Companies that demonstrate strong commitment to social aspects typically enjoy higher employee loyalty, stronger brand image, and lower turnover rates.

This is not only beneficial for reputation, but also directly impacts business performance and continuity.

3. Governance Practices

The governance aspect emphasizes the importance of transparency, accountability, and integrity in corporate management.

One example is the implementation of strict anti-corruption policies and regular internal audits to maintain investor and public trust.

In addition, companies that are serious about ESG implementation often establish ESG committees at the board of directors level, ensuring sustainability issues are embedded in top-level strategic decisions.

Governance standards can also be strengthened by adopting guidelines from international organizations such as the OECD or ISO 37000.

Good governance not only reduces legal and reputational risks, but also enhances competitiveness in attracting capital and strategic partners.

Companies that consistently uphold governance principles tend to earn greater trust from regulators, financial institutions, and the broader public—especially in an increasingly transparency-driven global business environment.

What Are Examples of ESG Standards?

Amid rising pressure from global investors and regulators, companies are now expected not only to “do good,” but also to report it properly.

The PwC Global Investor ESG Survey (2023) shows that 94% of investors want companies to disclose ESG information in globally comparable formats and standards.

Unfortunately, many companies are still confused about which ESG reporting standards to adopt.

To help you build a credible ESG strategy aligned with market expectations, this section discusses three of the most widely used ESG standards internationally, along with their benefits and business applications.

1. GRI (Global Reporting Initiative)

GRI is one of the most comprehensive and globally recognized sustainability reporting standards.

Its role is to provide a framework that enables companies to systematically and structurally report their economic, environmental, and social impacts.

This standard is flexible and applicable to a wide range of organizations across almost all industries.

For those seeking to build public trust and strengthen transparency, GRI is a highly relevant choice.

By following GRI guidelines, you can demonstrate accountability for sustainable business practices and corporate social responsibility.

Moreover, GRI-based ESG reports are often used as key references by international ESG rating agencies and sustainable investment analysts.

2. SASB (Sustainability Accounting Standards Board)

Unlike GRI, which is more general in nature, SASB is designed to identify industry-specific material ESG issues.

SASB provides reporting standards that are more focused and relevant to business dynamics across sectors such as energy, technology, manufacturing, and healthcare.

Through this approach, companies can save time while producing reports that truly reflect the risks and opportunities inherent in their businesses.

If your company operates in a highly regulated industry or faces unique environmental and social challenges, SASB can be particularly helpful in ensuring you report on what matters most to stakeholders and investors.

This materiality-based approach also makes ESG reporting more strategic—not merely an administrative obligation, but a communication tool for corporate value and performance.

3. TCFD (Task Force on Climate-related Financial Disclosures)

TCFD has become increasingly relevant amid growing climate-related risks to corporate operations and financial performance.

Developed by the Financial Stability Board, this standard has been adopted by many regulators and stock exchanges globally, including those in Singapore, the United Kingdom, and the European Union.

TCFD’s primary focus is transparency around climate-related risks and opportunities in corporate financial reporting.

TCFD encourages companies to evaluate climate change scenarios and integrate the findings into long-term business planning processes.

By adopting TCFD, you can demonstrate to investors that your company is prepared for the transition toward a low-carbon economy.

Furthermore, TCFD adoption adds value when seeking access to green financing or partnerships with businesses that have already embraced strict ESG principles.

Examples of ESG Implementation in Companies

According to the Deloitte 2024 CxO Sustainability Report, 85% of organizations reported increasing sustainability investments in 2024, up from 75% the previous year.

This trend is also evident in Indonesia, where many large companies are beginning to align their business strategies with sustainability principles.

These efforts go beyond social responsibility; they are strategic moves to ensure business continuity amid market pressure, stricter regulations, and increasingly environmentally conscious consumers.

Below are several concrete examples from national and multinational companies that have successfully implemented ESG in a structured manner—serving as valuable references for those looking to begin or enhance sustainability practices within their organizations.

1. Unilever

Unilever has been a pioneer in embedding ESG not as an additional initiative, but as a core part of its global business strategy.

Through the Unilever Sustainable Living Plan, the company aims to halve the environmental footprint of its products while increasing positive social impact—from improving smallholder farmer livelihoods to expanding access to health and hygiene.

Unilever’s efforts go beyond emissions reduction and supply chain efficiency.

The company also implements full transparency in production and distribution processes, builds long-term partnerships with local stakeholders, and actively addresses social issues such as gender equality and inclusion.

This demonstrates that sustainability can serve as a competitive advantage that strengthens brand positioning in the global market.

2. Bank BCA

Bank Central Asia (BCA) is a clear example of an Indonesian company that has successfully integrated ESG principles into its core business processes.

In recent years, BCA has increasingly published sustainability reports that reflect its commitment to good governance, transparency, and social and environmental responsibility.

In addition to strong anti-corruption policies and risk management practices, BCA promotes financial inclusion by reaching MSMEs through digital banking services and financial education initiatives.

These efforts not only expand economic access for communities, but also strengthen the long-term sustainability of the bank’s business.

As ESG commitment increases, trust from customers and stakeholders continues to grow.

3. Pertamina

As a strategic state-owned enterprise in the energy sector, Pertamina plays a crucial role in Indonesia’s transition toward a low-carbon economy.

One of its key initiatives is the development of renewable energy, such as bioenergy and green refineries, aimed at reducing dependence on fossil fuels and lowering carbon emissions.

Beyond clean energy, Pertamina also carries out environmental conservation and responsible hazardous waste management.

These efforts include environmental restoration in operational areas and collaboration with local communities to create sustainable empowerment programs.

Through an integrated ESG approach, Pertamina demonstrates that energy companies can pursue green transformation without sacrificing profitability.

Is It Time for Your Company to Implement ESG?

Implementing ESG is not only about meeting market expectations, but also about building a business foundation that is resilient to change.

Whether you lead a large corporation, a mid-sized company, or a startup, developing an ESG strategy will enhance competitiveness, efficiency, and corporate credibility.

However, designing and executing ESG initiatives requires knowledge, skills, and a systematic approach.

This is the time to invest in building ESG capabilities within your organization.

Prasmul-eli is here to support you through training and strategic programs in corporate ESG development.

Visit our website to find the ESG training program that best suits your needs.

Because the future of business is not only about growth, but about sustainability with real impact.

Amid the accelerating wave of global transformation that increasingly demands sustainable business practices, companies can no longer focus solely on financial aspects.

Today, investors, consumers, and regulators are paying closer attention to how companies treat environmental, social, and governance issues.

This is why the concept of ESG (Environmental, Social, Governance) has evolved into a critical pillar of modern business strategy.

However, despite ESG’s growing popularity, many organizations still struggle to design and implement an effective ESG strategy.

The challenges range from limited understanding to the absence of a structured system. This is where an ESG strategy plays a vital role as a comprehensive guide in addressing increasingly urgent sustainability demands.

This article will help you gain a deeper understanding of what an ESG strategy is, how it differs from an ESG strategic plan, and how to implement it systematically.

If you are a business owner, executive, or part of a corporate sustainability team, this discussion will serve as a strong foundation for shaping a responsible and competitive business future.

What Is an ESG Strategy?

An ESG strategy is a comprehensive approach designed to integrate environmental (E), social (S), and governance (G) issues into your business model.

This strategy is not merely about regulatory compliance, but about creating long-term value for both the company and its stakeholders.

Some key components of an ESG strategy include:

1. Identification of Material ESG Issues

The first step in building an ESG strategy is identifying the ESG issues that are most relevant and impactful to your business.

For example, manufacturing companies may prioritize energy efficiency and waste management, while service-based companies may place greater emphasis on workforce diversity and data security.

This process is carried out through a materiality assessment, which is an analysis to understand stakeholder expectations and align them with business priorities.

The results of this assessment will shape the core focus of your ESG strategy.

2. Setting ESG Goals and KPIs

Once priority issues are identified, you need to establish specific goals and Key Performance Indicators (KPIs).

For instance, reducing carbon emissions by 30% within five years or increasing the proportion of women in management positions.

These KPIs must be measurable, realistic, and communicated transparently to all stakeholders, both internal and external.

3. Integrating ESG into the Value Chain

An effective ESG strategy does not stop at the policy level. It must be implemented across all business processes, including procurement, operations, human resources, and partner relationships.

For example, companies can select suppliers with environmental certifications, implement flexible work policies to improve employee well-being, or establish independent governance committees.

What Is an ESG Strategic Plan?

Amid the growing urgency of global sustainability, companies can no longer rely solely on a high-level ESG strategy; they are required to have a concrete and measurable ESG strategic plan.

According to the EY Global Climate Action Barometer Report (2024), only 41% of companies have a climate transition plan. Meanwhile, the EY CEO Outlook Survey and other sources highlight trends in ESG integration and sustainability prioritization.

In fact, a comprehensive ESG plan has now become a key indicator in credit assessments and investor evaluations.

This indicates that an ESG strategic plan is not merely a complementary element, but a primary blueprint for building a resilient and adaptive business in the future.

If an ESG strategy represents the company’s long-term direction and commitment to environmental, social, and governance issues, then an ESG strategic plan is a practical and systematic action plan that translates those commitments into daily operations.

This plan typically consists of a roadmap, measurement indicators, and transparent ESG reporting and communication systems.

By having a strong ESG strategic plan, you not only strengthen your company’s credibility in the eyes of investors and regulators, but also ensure that ESG transformation is implemented consistently and delivers real impact.

1. Implementation Roadmap

One of the key elements of an ESG strategic plan is a phased implementation roadmap, covering short-, medium-, and long-term horizons.

This roadmap outlines the strategic initiatives to be undertaken, who is responsible at each phase, and how resources are allocated to support these initiatives.

This is crucial to avoid a lack of direction, especially in large organizations with multiple divisions and stakeholders.

For example, an energy company may design an ESG roadmap to reduce carbon emissions by up to 50% over the next five years, starting with a carbon footprint audit, improving energy efficiency, and transitioning to renewable energy sources.

When the roadmap is designed in a realistic and measurable way, each business unit understands what needs to be achieved, when targets are set, and how progress should be reported.

As a result, ESG is no longer just a branding slogan, but is executed in a systematic and integrated manner.

2. ESG Performance Measurement and Evaluation

No ESG strategic plan can be effective without a clear system for performance measurement and evaluation.

Every program and policy within the ESG strategic plan must be accompanied by relevant and easily monitored KPIs.

This helps you identify which initiatives are successful and which require improvement.

Today, many companies are adopting ESG analytics software such as Refinitiv, S&P Global, or MSCI to monitor ESG performance in real time, including carbon footprint, energy consumption, and workplace diversity levels.

Objective measurement also enables companies to quickly adjust policies and produce data-driven ESG reports that are more credible in the eyes of investors.

3. ESG Reporting and Communication

Effective ESG communication is not only about compliance, but also about building trust.

Therefore, an ESG strategic plan must include an effective reporting and communication strategy, particularly for regulators, investors, business partners, and consumers.

Global reporting standards such as GRI, SASB, or TCFD can serve as important references to ensure transparency and consistency of the data disclosed.

Through clear and accountable ESG reporting, your company can demonstrate that sustainability policies are not symbolic, but are embedded in its operational DNA.

Beyond strengthening public reputation, strategic reporting also opens opportunities to access government incentives and sustainable financing (green finance), which are increasingly attractive to institutional investors.

How Is an ESG Strategy Implemented in Companies?

Implementing an ESG strategy is no longer optional; it has become a necessity for companies that want to survive in today’s business environment.

According to the 2024 ESG Trends report by Boston Consulting Group (BCG), more than 90% of global companies state that comprehensive ESG implementation is already a core part of their business strategy.

However, only 37% claim they are able to execute it consistently across the organization.

Meanwhile, data from Ernst & Young (2024) shows that companies with structured ESG approaches are 2.6 times more likely to attract investors and increase market value compared to those that have not adopted ESG.

This highlights that while ESG awareness is rising, implementation challenges remain significant, ranging from limited resources and organizational culture to a lack of cross-functional collaboration.

Therefore, understanding practical steps for implementing an ESG strategy will greatly help you build a resilient, relevant, and sustainable company.

1. Leadership Commitment

Almost all organizational change initiatives start from the top. In the context of ESG, leadership from top management is the primary foundation for successful implementation.

You need to ensure that the board of directors and executive leadership truly understand the long-term value of ESG, not merely as an obligation, but as a strategic opportunity that strengthens competitiveness.

This commitment must be active and measurable, for example by including ESG as part of board agendas or direct reporting to the CEO.

Concrete manifestations of leadership commitment include allocating dedicated budgets for ESG projects, establishing cross-departmental ESG units or committees, and involving management in strategic decisions that impact environmental, social, and governance issues.

Without real support from top leadership, ESG initiatives at the operational level tend to be sporadic and unsustainable.

Therefore, leadership buy-in is an irreplaceable element in your company’s ESG transformation journey.

2. Employee Engagement

An ESG strategy is not solely the responsibility of the sustainability department; it must become part of the organization’s overall work culture.

Engaging employees at all levels is an effective way to make ESG a shared value rather than a top-down initiative.

You can start with internal training, sustainability-focused town halls, or integrating ESG into employee performance evaluations (KPIs).

Beyond that, encourage tangible employee involvement in social or environmental projects such as office recycling programs, community engagement activities, or reducing carbon footprints in daily operations.

When employees feel directly involved in the positive impact of ESG, they are more likely to become active internal change agents.

High participation levels ultimately strengthen the effectiveness and sustainability of your company’s ESG programs.

3. Partnerships and Collaboration

ESG implementation cannot be done in isolation. Building partnerships with external stakeholders such as NGOs, local communities, academics, and government institutions can expand impact while enhancing corporate credibility.

For example, collaborating with universities on renewable energy research projects or partnering with NGOs on local community empowerment programs.

Collaboration also provides access to industry best practices and accelerates innovation in ESG initiatives.

You not only gain new insights, but also demonstrate to the public that your company is open to external perspectives and ready to be part of collective solutions to global challenges.

In the context of ESG, collaboration is not just a value add; it is a strategic necessity.

4. Leveraging Technology and Data

In the digital era, technology plays a vital role in enhancing the effectiveness of ESG implementation.

The use of ESG analytics software enables companies to monitor performance in real time, process complex data, and make evidence-based decisions.

Technologies such as artificial intelligence, big data, and blockchain are now being used to track carbon emissions, energy consumption, and supply chain transparency automatically.

Beyond operational efficiency, leveraging technology in ESG addresses demands for transparency from regulators and investors.

ESG reports built on accurate data increase market trust and strengthen your reputation among stakeholders.

Thus, investment in technology is not an additional cost, but a long-term asset that reinforces the foundation of corporate sustainability.

Is It Time to Make ESG Your Core Business Strategy?

In a business landscape that increasingly demands accountability and sustainability, an ESG strategy is not just a trend, but a key driver of long-term competitiveness.

However, without comprehensive understanding and a proper implementation plan, an ESG strategy risks becoming merely symbolic.

To address this, prasmul-eli presents the ESG in Action: From Plan to Impact program to help you translate ESG commitments into concrete actions with real impact.

Strengthen your organizational capabilities, master strategic ESG methodologies, and position your company as part of the global sustainability solution.

Leadership training has undergone a major evolution as the world of work continues to transform, driven by technological disruption and the emergence of new generations such as Gen Z.

Amid these changes, traditional top-down leadership styles are rapidly losing relevance.

A survey by Gartner shows that organizations adopting a human-centric leadership approach—one based on empathy and flexibility—achieve 3.8 times higher employee performance and 3.2 times better retention rates compared to conventional leadership models.

This indicates that leadership training is no longer merely about management strategies, but about shaping leaders who are adaptive, inclusive, and aligned with human needs in the modern workplace.

These findings highlight a clear gap that must be addressed through the development of relevant and transformative leadership training content.

Therefore, organizations that aim to survive and excel in an increasingly dynamic business landscape must begin investing in leadership development programs that reflect real-world challenges—ranging from digital leadership and agile leadership to managing multigenerational teams.

This article explores the latest leadership trends, the key challenges faced by today’s leaders, and the essential skills and leadership training topics you need to master to navigate change with confidence and effectiveness.

The Evolution of Leadership Trends

In the midst of technological disruption and the rise of new workforce generations such as Gen Z, leadership patterns have undergone significant transformation.

According to Gartner, organizations that adopt a human-centric way of working—emphasizing empathy and flexibility—achieve employee performance levels 3.8 times higher and retention rates up to 3.2 times higher than those using traditional top-down models.

In addition, the Gartner Digital Worker Survey reports that 82% of employees believe it is important to be treated as whole human beings, not merely as productivity metrics. Yet, only 29% of today’s leaders are considered effective human leaders.

This underscores the importance of understanding current leadership trends in order to lead in a relevant, strategic, and impactful way in the digital era.

1. Leadership Focused on a People-Centric Culture

One of the most prominent trends is the shift toward people-centric leadership—a leadership style that places people at the core of organizational strategy.

Leaders who adopt this approach go beyond task delegation; they become facilitators of individual growth and holistic stewards of team well-being.

The primary focus is on building emotional connections, fostering psychological safety, and understanding individual team members’ needs so they can perform at their best.

People-centric strategies have been proven to increase productivity and employee loyalty. Companies such as Microsoft and Google have long implemented this approach through well-being programs, flexible work arrangements, and empathy-driven leadership.

If you aim to build resilient and highly engaged teams, this leadership style is well worth adopting and studying in depth.

2. Digital Leadership

Digital leadership does not require you to be an IT expert. However, it does demand an understanding of how technology impacts business strategy, operations, and decision-making.

Digital leaders are able to interpret data trends, adopt digital collaboration tools, and foster a culture of innovation within their teams.

This competency is critical, as the speed of technological change leaves little room for leaders who lack digital awareness.

A clear example of successful digital leadership can be seen in global retail companies that have integrated AI and big data into supply chains and customer personalization. Their leaders not only supported technological innovation but also pioneered an adaptive digital culture.

As a result, digital literacy training has become a mandatory component of modern leadership development.

3. Agile Leadership

In a business environment marked by uncertainty and rapid change, agile leadership has become a vital pillar.

Agile leaders think adaptively, adjust strategies quickly, and empower teams to respond independently to challenges. This approach is particularly suited to highly competitive and innovation-driven industries.

Agile leadership also emphasizes continuous learning and iterative strategy development. Many technology startups have demonstrated the effectiveness of this model in sustaining innovation speed and feedback-driven decision-making.

It is no surprise that large organizations are now adopting agile principles in project management and human capital development.

Leadership Challenges

In an ever-changing business landscape, leadership challenges are becoming increasingly complex and multidimensional.

The Global Leadership Forecast 2023 by DDI reveals that only 40% of global leaders feel prepared to face business challenges over the next five years.

Meanwhile, a late-2024 study by McKinsey & Company shows that leaders who can manage organizational complexity and team diversity have a significant impact on productivity and employee retention.

Whether you are a senior leader or an emerging leader, recognizing these challenges is a critical first step toward guiding your organization toward sustainable success.

1. Managing Multigenerational Teams

Age diversity in the workplace is now unavoidable.

Within a single team, you may lead Gen Z employees who prefer instant messaging, Millennials who thrive on collaboration, and Gen X professionals who value structure and stability.

Differences in work styles, career expectations, and feedback preferences add complexity to leadership roles.

To be effective, you must develop adaptive interpersonal communication skills—active listening, understanding communication preferences, and creating inclusive spaces that respect differences.

Leadership training focused on intergenerational management is essential to equip you with the right techniques and approaches.

2. Organizational and Technological Change

Organizational transformation—whether through digitalization, structural change, or cultural shifts—has become inevitable.

The challenge is that change often triggers resistance, both from employees and management.

As a leader, you are expected not only to make strategic decisions but also to communicate vision clearly and manage change with empathy.

Change leadership skills are critical in this context. You need clarity of vision, sensitivity to team dynamics, and a structured change management approach.

Leadership programs that include modules on leading through change or digital transformation leadership can help you systematically build these capabilities.

3. Work-Life Balance Expectations

With increasing awareness of mental health and employee well-being, leaders are now expected to create healthy and flexible work ecosystems.

The challenge lies in maintaining team productivity without compromising personal well-being—this is no longer solely an HR responsibility, but a direct leadership mandate.

You must design flexible work systems—such as remote or hybrid arrangements—while maintaining engagement and accountability.

Equally important is leading by example. When leaders model healthy work-life balance, positive work culture becomes deeply embedded. Training on well-being leadership or human-centered leadership is highly relevant to addressing this challenge.

Essential Skills for Leaders

According to the World Economic Forum’s Future of Jobs Report 2023, leadership skills such as strategic thinking, emotional intelligence, and digital literacy are among the most critical competencies for the coming decade.

Additionally, the LinkedIn Workplace Learning Report 2024 shows that 57% of global organizations are investing more in leadership training focused on soft skills rather than technical hard skills.

This data confirms that modern leadership is no longer about control, but about guidance, adaptability, and value-based decision-making in uncertain environments.

1. Strategic Thinking

Strategic thinking is the ability to see the big picture, analyze trends, and develop long-term plans aligned with business objectives.

Leaders with strong strategic thinking skills can integrate operations, marketing, finance, and human capital into impactful decisions—avoiding short-term reactions that undermine sustainability.

Training typically includes business case studies, strategy simulations, and group discussions that promote holistic thinking and data-driven roadmapping.

2. Emotional Intelligence (EI)

Emotional intelligence involves recognizing, understanding, and managing both your own emotions and those of others.

Leaders with high EI are more effective in building healthy working relationships, resolving conflict, and creating positive, productive work environments.

EI training includes self-reflection, role-playing, and empathetic discussions—particularly vital in hybrid and virtual work settings where emotional connection is harder to establish.

3. Coaching and Feedback Skills

Modern leaders are no longer commanders—they are growth facilitators.

The ability to provide empowering coaching and constructive feedback helps team members feel valued, grow professionally, and stay engaged.

Training covers active listening, solution-based coaching, and trust-building communication to foster a continuous learning culture.

4. Decision-Making Under Pressure

The ability to make fast and sound decisions under pressure distinguishes great leaders from average ones.

In an unpredictable world, crises can arise at any time—regulatory shifts, technological disruption, or market instability.

Decision-making training uses crisis simulations, role-playing, and real-case analysis to build calm, systematic thinking under stress.

5. Digital Literacy for Leaders

Digital literacy for leaders is not about coding—it is about using data and technology to make strategic decisions.

This includes understanding digital trends, interpreting analytics dashboards, and identifying technological risks and opportunities.

Leaders with a digital mindset gain a clear competitive advantage in the age of AI and automation.

Leadership Training Programs Leaders Need Today

As business dynamics grow more complex, leadership training content must continue to evolve.

The 2023 Global Leadership Forecast by DDI reports that only 40% of organizations believe their leaders are ready to face challenges over the next five years—a decline from previous years.

This has driven organizations to adopt leadership development programs aligned with strategic needs and digital transformation.

1. Transformational Leadership Programs

Designed to equip leaders to drive large-scale change with clarity and sustainability—ideal for organizations undergoing digitalization, expansion, or cultural shifts.

2. Leading High-Performance Teams

Focuses on team dynamics, collaboration, accountability, and empowerment to build resilient, results-driven teams.

3. Leadership Communication and Influence

Develops persuasive, trust-based communication skills essential for hybrid work environments and complex stakeholder engagement.

4. Agile and Resilient Leadership

Prepares leaders to thrive in VUCA conditions by embracing adaptability, experimentation, and resilience under pressure.

5. Inclusive Leadership

Trains leaders to build fair, diverse, and psychologically safe workplaces by addressing unconscious bias and embracing diverse perspectives.

Preparing Leaders for the Future

In the complexity of modern business, designing the right leadership training content is a strategic investment for long-term growth.

With only 40% of organizations feeling ready for future leadership challenges, it is clear that traditional training approaches are no longer sufficient.

Today’s leaders must master strategic thinking, emotional intelligence, and digital literacy to navigate change and empower teams effectively.

If you are looking to equip yourself or your organization with transformative and context-driven leadership development, explore Transformational Leadership programs by prasmul-eli and take a meaningful step toward relevant, resilient, and impactful leadership.

In an increasingly competitive and transparent business environment, sustainability is no longer a complementary initiative. ESG (Environmental, Social, and Governance) has become a key driver of reputation, access to capital, and long-term competitive advantage.

Deloitte (2024) notes that companies that strategically integrate ESG principles are 2.6 times more likely to maintain a competitive edge compared to their peers.

However, how can ESG be measured in a concrete and meaningful way? Many companies struggle to identify the most relevant indicators and measurement methods. This is why understanding how to measure ESG effectively is critical.

This article explores the importance of ESG assessment, the core components of a strong ESG score, and practical steps for implementation.

If you want to ensure your company remains relevant amid growing global demands, read on.

Why Is ESG Assessment Important?

Amid global pressure for greater transparency and responsibility in environmental, social, and governance practices, ESG assessment is no longer optional.

According to the PwC Global Investor Survey 2023, 76% of investors state that a company’s ESG performance significantly influences their investment decisions.

This demonstrates that ESG assessment is not only about sustainability—it is also about long-term competitiveness. Understanding why ESG matters can be a strategic step in strengthening your company’s position in an increasingly ethical and competitive market.

1. Improving Access to Investors and Financing

Modern investors are no longer focused solely on profitability. They also consider how companies manage environmental and social risks.

PwC (2023) reports that more than 70% of global investors regard ESG information as a critical part of their due diligence process.

This means that when your company demonstrates strong and measurable ESG performance, you not only meet investor expectations but also unlock broader financing opportunities.

By providing credible and auditable ESG data, you signal a genuine commitment to sustainability—not mere rhetoric. This increases trust among institutional investors, enables access to lower-cost capital, and opens doors to green financing or ESG-linked loans. In a competitive market, ESG credibility can be a decisive differentiator.

2. Strengthening Brand Image and Public Trust

Today’s consumers—especially Millennials and Gen Z—tend to be more loyal to brands that uphold sustainability values.

They are not just purchasing products; they are buying into a company’s values and commitment to environmental and social responsibility.

By transparently publishing ESG reports, your company gains greater trust and appreciation from the public, even amid intense price competition.

A strong ESG assessment also supports long-term reputation building. During times of crisis or reputational risk, companies with consistent ESG commitments are better positioned to rebuild public trust. Moreover, strong ESG credentials enhance your standing with regulators, local communities, and business partners by demonstrating concrete ethical and social accountability.

ESG Score Components

Understanding ESG score components is essential for companies aiming to strengthen sustainability strategies and attract responsible investors.

Based on reports from Sustainalytics and official data from the Indonesia Stock Exchange (IDX, 2024), ESG assessments evaluate not only a company’s commitments but also how effectively it manages ESG-related risks.

Sustainalytics assesses companies using two main parameters: exposure (inherent risk) and management (the company’s ability to manage those risks). Strong ESG management translates into lower overall ESG risk scores.

The three core components—Environmental, Social, and Governance—help companies design more focused and impactful sustainability strategies.

1. Environmental Aspect

The Environmental component evaluates how a company manages its impact on the environment.

Key indicators include renewable energy usage, energy efficiency, waste management, carbon footprint, water conservation, and climate change mitigation strategies.

Companies that excel in this area typically have documented environmental policies and publish regular reports on emissions reduction and waste management.

Common environmental metrics include CO₂ emission intensity per unit of production, total energy savings over a defined period, and the percentage of recycled materials used in production. The more measurable your contribution to reducing emissions and waste, the stronger your ESG score—while also improving operational efficiency and reducing regulatory risk.

2. Social Aspect

The Social component assesses how companies interact with employees, communities, and supply chain partners.

Indicators include labor practices (health, safety, and human rights), diversity and inclusion, corporate social responsibility (CSR) programs, and community engagement. Supply chain standards—such as supplier compliance with labor and safety regulations—are also critical.

Common social metrics include employee satisfaction levels, gender diversity in leadership, training hours per employee, and the scope and frequency of CSR programs.

Strong social performance enhances internal relationships, builds a positive public reputation, improves talent retention, and strengthens community trust.

3. Governance Aspect

Governance reflects how a company manages leadership structures and decision-making processes.

Key evaluation areas include financial transparency, anti-corruption policies, board independence, internal audit mechanisms, and risk oversight systems.

Companies with documented anti-bribery policies and effective whistleblowing mechanisms tend to score highly. Board diversity and independence further signal fair decision-making and reduced conflicts of interest.

Strong governance is a foundational indicator of integrity and long-term reliability for investors and stakeholders.

ESG Risk Rating Based on Sustainalytics

To better understand ESG scores quantitatively, below is the ESG risk classification used by Sustainalytics, as cited by the Indonesia Stock Exchange:

Lower scores indicate lower ESG risk exposure and stronger management systems.

Controversy Categories (Sustainalytics)

In addition to risk scores, Sustainalytics conducts controversy screening based on public incidents affecting ESG reputation:

Avoiding higher categories (4 and 5) is critical, as they significantly affect investor perception, market credibility, and business continuity.

How to Measure ESG Effectively

According to Deloitte (2024), approximately 85% of large companies have developed dedicated methodologies to measure ESG performance regularly.

Rising pressure from investors, regulators, and consumers has made transparency and accountability essential. KPMG further reports that companies with structured ESG measurement systems are twice as likely to retain long-term investors.

1. Define Objectives and Scope

Begin by clearly defining the purpose of your ESG evaluation. Is it to meet regulatory requirements, attract institutional investors, or develop a long-term sustainability strategy?

Your objective determines the most suitable framework. For shareholder transparency, GRI (Global Reporting Initiative) is recommended, while SASB may be more appropriate for financial sector companies.

Equally important is defining the scope—whether company-wide, by business unit, or project-specific. A clear scope ensures relevant indicators, efficient data collection, and actionable insights.

2. Identify Relevant ESG Indicators

Select Key Performance Indicators (KPIs) aligned with your industry. Manufacturing companies should prioritize emissions, energy use, and waste management, while service companies may focus on employee engagement, diversity, and customer satisfaction.

Refer to international standards such as GRI, TCFD, and ISO 26000, while adapting indicators to local regulations and stakeholder expectations. This ensures global relevance and local alignment.

3. Leverage Analytical Tools and Technology

Digital transformation plays a critical role in ESG measurement. Platforms such as Bloomberg ESG, Refinitiv, Sustainalytics, and S&P Global enable automated tracking, real-time dashboards, and standardized reporting.

Integrating data across HR, finance, and operations improves accuracy, reduces manual errors, and enables ESG benchmarking against industry peers.

4. Engage Professional Consultants

Due to ESG’s complexity, many companies partner with professional consultants.

This is where prasmul-eli becomes your strategic partner. With extensive experience across industries, prasmul-eli supports companies in building credible and verifiable ESG systems—covering framework design, indicator selection, and strategic interpretation.

We ensure ESG reports are clear, meaningful, and impactful for investors, regulators, and communities—strengthening long-term corporate reputation.

5. Continuous Review and Improvement

ESG measurement is an ongoing process. Conduct annual reviews, set more ambitious targets, and adapt strategies to evolving regulations and market expectations.

Regular internal training strengthens ESG culture across the organization. When employees understand their role in ESG, implementation becomes more consistent and impactful.

Is This the Right Time for Your Company to Measure ESG?

Effective ESG measurement is key to building a business that not only survives—but excels.

With the right strategy and indicators, ESG can shift from a compliance requirement into a true competitive advantage.

If you are ready to build a trusted and effective ESG system, prasmul eli is here to support your journey through training and consulting programs.

Contact us today and prepare your organization to meet future challenges sustainably.

In today’s modern business landscape, the term ESG Reporting is becoming increasingly common, and for good reason.

Amid growing public pressure on environmental, social, and governance issues, companies are no longer expected to focus solely on generating profit. They are now required to demonstrate accountability and responsibility in how they operate.

Yet, many business leaders are still asking the same questions: What exactly is ESG Reporting? Why is it so critical? And how should we begin?

These challenges are faced by many organizations today—perhaps even by yours. On one hand, there is a strong desire to transform into a more sustainable business. On the other, limited understanding and lack of clear strategy often make ESG Reporting feel complex and overly technical.

When implemented properly, however, ESG Reporting does far more than fulfill regulatory requirements. It strengthens competitiveness, enhances credibility, and builds trust among investors and consumers alike.

This article will help you understand ESG Reporting comprehensively—from its urgency and definition to practical guidance on selecting the right reporting framework. Let’s begin.

Why Is ESG Reporting Important?

As global awareness of sustainability and social responsibility continues to grow, ESG Reporting has evolved from a voluntary disclosure into an integral component of modern corporate strategy.

A PwC report (2023) reveals that more than 70% of global investors now consider ESG information as a key factor in their investment decisions. This means ESG Reporting not only reflects a company’s commitment to environmental and social responsibility, but also serves as a benchmark for governance quality and long-term business sustainability.

For companies that aim to remain relevant and competitive in an increasingly transparent market, ESG Reporting can no longer be overlooked.

1. Enhancing Credibility and Transparency

An ESG report developed using a clear and credible framework strengthens a company’s image as a transparent, accountable organization with a long-term commitment to sustainability.

Transparency is essential in an era where public expectations extend beyond profit generation. Stakeholders increasingly demand that companies contribute positively to society and the environment.

Accurate ESG reporting also demonstrates that your organization has robust reporting systems and is able to take responsibility for its actions. By openly disclosing data on carbon emissions, workforce diversity, and governance policies, trust in management increases significantly.

2. Attracting Investors and Business Partners

Today, ESG performance is closely scrutinized not only by consumers, but also by investors and business partners before major decisions are made.

According to PwC Global Investor Survey 2023, 70% of investors state that ESG information directly influences their investment decisions, and more than 80% expect companies to commit to long-term sustainability targets.

In an increasingly interconnected business ecosystem, a strong ESG reputation can become a key differentiator. Large corporations have even begun using ESG scores as criteria when selecting suppliers or vendors.

A well-prepared ESG report signals integrity, credibility, and readiness to unlock new business opportunities.

3. Reducing Long-Term Risks

Environmental, social, and governance issues are not future threats—they are present-day challenges.

ESG Reporting helps companies identify potential risks before they escalate into reputational or operational crises. For example, consistent carbon emission reporting can drive energy efficiency, while labor rights disclosures encourage healthier and more productive workplace cultures.

More importantly, ESG data enables management to make informed, data-driven decisions. By mapping risk-prone areas early, companies can avoid litigation, consumer boycotts, and financial losses arising from social or environmental negligence.

This proactive approach to risk management is increasingly valued in global markets.

What Is ESG Reporting?

ESG Reporting is a systematic process of measuring, recording, and communicating a company’s performance across Environmental, Social, and Governance dimensions.

It includes various metrics that reflect how a company impacts—and takes responsibility for—society and the environment at large.

ESG Reporting is not merely about image-building. It is a strategic tool used to:

• Communicate commitment to sustainable business practices

• Provide transparency to stakeholders

• Support internal and external decision-making

Organizations such as Global Reporting Initiative (GRI), SASB, and TCFD have developed frameworks to guide companies in preparing ESG reports. Each framework serves different objectives and industry contexts.

How to Choose the Right ESG Reporting Framework

Selecting the appropriate ESG framework is not about following trends—it is a strategic decision that builds market trust and regulatory compliance.

An EY Global Survey (2023) found that 75% of large companies currently use more than one ESG framework to address complex reporting demands. This highlights the importance of choosing the right framework as part of a broader sustainability communication strategy.

So, how should you approach this decision?

1. Define Your Reporting Objectives

Before selecting a framework, clearly define the purpose of your ESG report.

Is it intended to attract investors, comply with regulatory requirements, or strengthen brand credibility with the public? Each objective requires a different reporting approach.

For instance, if your goal is to build consumer trust as an environmentally responsible brand, a strong and human-centered narrative may be more effective than highly technical data.

Frameworks like GRI are suitable for public-oriented reporting due to their broad scope and accessible language, while SASB or TCFD are more appropriate for investor-focused, financially driven ESG disclosures.

2. Understand Your Target Audience

Once objectives are clear, identify the primary audience of your ESG report—investors, regulators, consumers, or a combination of all three.

Each audience has distinct expectations and levels of ESG literacy. Investors typically seek measurable data directly linked to financial performance, making SASB or TCFD more relevant.

For public or government communication, GRI is often recommended due to its comprehensive, cross-sector approach that presents ESG initiatives in a transparent and accessible manner.

Aligning your report with audience expectations increases the likelihood that it will be read, understood, and valued.

3. Assess Industry Characteristics and Business Risks

Every industry faces unique ESG challenges and risk profiles. Therefore, framework selection must reflect sector-specific realities.

Companies in energy or mining, for example, face high expectations for environmental risk and carbon emission disclosures. Frameworks like TCFD or CDP are particularly relevant due to their technical guidance on climate-related risks.

Meanwhile, service-based or digital companies may be expected to focus more on governance, data protection, and social impact. Frameworks such as GRI or Integrated Reporting () can help structure ESG disclosures aligned with these priorities.

4. Consider a Multi-Framework Approach

In practice, many companies choose not to rely on a single framework.

According to the EY Global Corporate Reporting Survey 2023, three out of four large companies globally use two or more ESG frameworks simultaneously.

For example, GRI can be used to address public and regulatory stakeholders, while SASB or TCFD targets investors and capital markets. This allows tailored ESG messaging for different audiences.

While a multi-framework approach requires careful coordination to avoid redundancy, when managed well, it significantly enhances reporting credibility and effectiveness.

5. Engage Professional ESG Consultants

Choosing the right ESG framework can be complex—especially for organizations at the early stages of their sustainability journey.

This is where professional consultants like prasmul-eli play a critical role. With extensive experience across industries, we support companies in designing ESG reporting strategies that are effective, credible, and aligned with global standards.

Beyond technical guidance, prasmul-eli provides strategic insights and structured training programs to empower internal teams to manage ESG reporting sustainably and independently over the long term.

This is a vital investment in building trust and competitive advantage.

Is Now the Right Time to Start ESG Reporting?

ESG Reporting is not a passing trend—it is a fundamental component of responsible business in the future.

Through transparent, strategic, and relevant reporting, companies can strengthen their position in the eyes of investors and consumers while preparing for global market dynamics.

If you are ready to begin or enhance your ESG Reporting journey, join prasmul eli’s ESG training programs. With experienced facilitators and practice-based curricula, we are ready to become your strategic partner in sustainable business transformation.

The ESG Framework is no longer just a buzzword in the modern business world — it has become a strategic compass for companies that want to remain relevant in the era of transparency and sustainability.

According to PwC’s 2023 report, more than 76% of global investors consider sustainability performance (ESG) a key factor in their investment decisions. Meanwhile, Bloomberg Intelligence projects that global ESG-related assets will reach USD 53 trillion by 2025, representing over one-third of total global assets.

These figures reflect a major paradigm shift: it is no longer enough for companies to generate profit; they must also prove their positive social and environmental impact.

Amid evolving regulations and growing market expectations, understanding the ESG Framework is not just an option — it is now a strategic necessity.

What is the ESG Framework?

In a business landscape increasingly shaped by transparency and sustainability, the ESG Framework has emerged as a new global standard that companies can no longer ignore.

ESG stands for Environmental, Social, and Governance — the three pillars of corporate sustainability. This framework serves as a guide for identifying, managing, and reporting sustainability issues in a structured and transparent manner.

Implementing ESG practices properly not only strengthens corporate reputation and stakeholder trust, but also improves long-term business resilience. In this way, ESG Frameworks are not just reporting tools, but also drivers of future business transformation.

The Three ESG Pillars

• Environmental: Carbon emissions, energy efficiency, waste management.

• Social: Labor rights, workforce diversity, community impact.

• Governance: Transparency, board structure, auditing, risk management.

Managing these comprehensively provides a holistic view of how a company impacts society and the environment, and how it is governed. ESG is not about image — it is about creating sustainable long-term value and building trust with investors, customers, and regulators.

Core Functions of the ESG Framework

1. Measuring Non-Financial Impact – Quantify risks and opportunities such as carbon footprint, community relations, and fair labor practices.

2. Guiding Business Strategy – Align business growth with sustainability values without sacrificing profitability.

3. Strengthening Stakeholder Communication – Provide credible and transparent reporting that builds trust with investors, regulators, and the public.

4. Aligning Business Goals with Market Expectations – Meet the rising demand from customers and investors for responsible business practices.

Leading ESG Frameworks

• GRI (Global Reporting Initiative) – Widely used, focuses on comprehensive economic, social, and environmental impacts.

• SASB (Sustainability Accounting Standards Board) – Industry-specific ESG reporting for investors.

• TCFD (Task Force on Climate-related Financial Disclosures) – Climate risk and opportunity reporting.

• CDP (Carbon Disclosure Project) – Global disclosure on carbon emissions, water, and forests.

• Integrated Reporting – Combines financial and non-financial disclosures to highlight value creation.

Companies often adopt multiple frameworks to meet diverse stakeholder expectations and strengthen credibility.

Why ESG is a Strategic Imperative

According to Deloitte (2024), companies that integrate ESG into their core strategy are 2.6x more likely to sustain long-term competitive advantage. McKinsey reports that mature ESG initiatives can boost market valuation by 10–20%.

The message is clear: ESG is not a trend, it is an investment in business resilience and relevance.

Ready to Lead the Change?

By applying the right ESG Framework, your company can:
✔ Align business goals with modern market expectations
✔ Enhance transparency and investor confidence
✔ Build long-term resilience in a fast-changing world

If you’re ready to implement ESG strategically, join our flagship program:
ESG for Leaders: Lead the Change or Be Left Behind — designed for visionary leaders ready to drive transformation, not just follow the trend.

Poor business negotiation skills can impact a company's financial well-being. One result of poor negotiations is that neither party achieves a win-win solution, but rather a one-sided outcome.

Good negotiation isn't just about winning a deal with the other party; it's also about maximizing your company's long-term profits and success.

However, what happens if your team lacks the skills to negotiate effectively?

The negative impact is financial. Companies can experience lost profits due to poor negotiations.

A survey conducted during a business webinar found that participants acknowledged poor negotiation skills caused a loss of more than 5% in profits and highlighted the potential for a 50% profit increase through improved negotiation skills.

Will you continue to compromise if your team has poor negotiation skills? If not, the following will discuss the financial impact of poor business negotiations and address them through employee development programs such as negotiation skills training certification.

The Hidden Costs That Arise When Business Leaders Negotiate Poorly

An essential skill for business leaders, in addition to leadership skills, is the ability to conduct effective and profitable negotiations for the company.

Bad negotiations aren't about failing to reach an agreement, but about failing to maximize the benefits of agreements made with external parties.

Poor business negotiations can even lead to hidden costs that are unforeseen.

Here are some of the financial impacts or hidden costs that arise from poor negotiations.

Lost Sales Opportunities

Ineffective negotiations can result in less favorable agreements, such as higher prices or inflexible terms.

This can reduce the competitiveness of your product or service, resulting in lost sales opportunities. For example, a technology company lost a $50 million contract due to negative online reviews, which made potential partners hesitant to collaborate.

Damaged Relationships with Clients and Partners

An overly aggressive negotiation approach or one that doesn't consider the interests of the other party can damage long-term business relationships. For example, a franchise company struggled to expand due to a strained relationship with the franchisor stemming from negotiations that failed to respect the value of the partnership.

Lost Company Profits

Poor negotiations can lead to agreements that are detrimental to the company, such as higher prices for goods or services or unfavorable terms. This can lead to lost revenue in the form of lower selling prices.

If a company fails to reach a favorable agreement in negotiations with suppliers, they may be forced to purchase goods at higher prices than their competitors. This reduces their profit margins, which directly impacts financial performance.

Litigation and Dispute Resolution Costs

Poor negotiations often lead to disagreements that cannot be resolved amicably. This can lead to high litigation costs if one party decides to take the matter to court. This legal process is not only time-consuming but also very expensive.

Decreased Competitiveness

With poor negotiations, companies may be trapped in less flexible or unfavorable agreements, which can harm their market position. This can lead to a decrease in their competitiveness, ultimately impacting revenue.

How to Avoid Hidden Costs of Poor Business Negotiations?

The hidden costs or financial impact of poor business negotiations can be overcome by building trust and conducting negotiations that prioritize a balance of benefits for both parties.

To avoid these financial impacts, business leaders also need to avoid common mistakes that often occur in negotiations, such as rushing, not building trust first, and others.

Here are some ways to avoid these hidden costs:

1. Build Trust and Transparency. Openly share business goals and expectations with suppliers and partners to build mutually beneficial relationships.
2. Value-Based Negotiations. Instead of focusing solely on price, consider the long-term value of the relationship, including quality, support, and innovation.
3. Avoid Overly Competitive Negotiations. An overly pressured approach can damage relationships and reduce opportunities for future collaboration.
4. Conduct Due Diligence. Before signing a contract, be sure to thoroughly check the supplier's reputation and capacity to fulfill their commitments.
5. Use Technology for Contract Management. Implementing an effective contract management system can help track obligations, expiration dates, and ensure compliance with agreements.

How Can a Business Leader Improve Their Negotiation Skills?

Who needs negotiation skills most? Business leaders, of course, but not just business leaders; their teams must also be able to negotiate.

Negotiation is a skill that deals directly with people and requires practice.

Here's how to improve your business negotiation skills:

Thorough Preparation and BATNA Analysis

Before entering the negotiation table, business leaders must prepare by understanding the positions and interests of all parties involved.

Identifying the BATNA (Best Alternative to a Negotiated Agreement) provides greater bargaining power and helps determine the bottom line of agreement.

According to the Program on Negotiation at Harvard Law School, having a strong BATNA enables negotiators to make better decisions and avoid costly agreements.

Applying a Principled Negotiation Approach

The book "Getting to Yes" by Fisher and Ury proposes a principled negotiation method consisting of four main principles:

1. Separate the person from the problem. Focus on the issue, not the individual.
2. Focus on interests, not positions. Explore the reasons behind the position taken.
3. Create options for mutual benefit. Think creatively to find solutions that benefit all parties.
4. Based on objective criteria. Use fair and mutually acceptable standards.

Improving Emotional Intelligence and Communication

The ability to actively listen, demonstrate empathy, and communicate effectively is crucial in negotiations. According to HBS Online, business leaders must learn to create shared value by understanding the other party's perspective and adapting to dynamic situations.

Practice Through Negotiation Simulations

Conducting simulations or role-playing can improve negotiation skills. Programs like Negotiation War Games, developed by Outcome Simulations, use role-based simulations to prepare negotiators for a variety of complex situations. This method has been proven effective in improving negotiation outcomes.

Advanced Education and Training

Attending a negotiation training program from a reputable institution can deepen your understanding and skills. For example, Harvard Business School offers the Negotiation Mastery course designed to help participants close stalled deals, maximize value creation in agreements, and resolve differences before they escalate into costly conflicts.

How Can Negotiation Skills Training Certification Improve Negotiation Skills?

If you're looking for an institution that provides advanced training to hone a business leader's business negotiation skills, the negotiation skills training certification program from prasmul-eli is the answer.

This program provides an in-depth understanding of profitable negotiation techniques, from careful preparation with a BATNA (Best Alternative to a Negotiated Agreement) to using a collaborative approach that leads to win-win solutions.

Business leaders are taught how to build strong relationships with partners and clients, thereby creating mutually beneficial agreements and minimizing the financial risks of bad deals.

Furthermore, this training introduces participants to the importance of soft skills such as effective communication, empathy, and listening, which are essential in any negotiation process.

With simulation sessions and hands-on practice, participants can hone their skills in conditions close to real-life situations, thus better preparing them for the challenges of complex negotiations.

As a result, this training not only improves negotiation skills but also helps companies reduce hidden costs, avoid costly disputes, and increase overall revenue and profitability.

Every business leader wants their business to continue to generate sustainable profits. However, market conditions can change, so businesses need to design a business strategy to stay relevant to current market conditions.

A business strategy helps companies maintain their market leadership, identify new business opportunities, and even plan exit or pivot strategies if the current business model is no longer relevant to the market.

Designing an effective business strategy can increase a company's profits. As stated by McKinsey Senior Partner Kevin Laczkowski, who revealed that only 20% of companies generate 90% of total economic profits over a ten-year period.

Companies that successfully achieve this position typically undertake major strategic moves that increase productivity, differentiation, and effective resource allocation. However, only 8% of companies successfully transition from a middle-tier position to a top-tier position within that period.

Unfortunately, business strategy formulation receives insufficient attention. According to the Harvard Business Review, 85% of executive leadership teams spend less than an hour discussing business strategy. In fact, this research found that employees were unaware of the company's business strategy.

The focus on execution is certainly appropriate. However, execution will not produce optimal results if the strategy is ineffective. This means you're wasting time.

Therefore, this discussion will guide you in designing an effective business strategy so that execution can have the maximum impact on your business.

What are the Elements of a Business Strategy?

A business strategy is a process an organization uses to utilize available knowledge to discuss the desired direction of a business.

This strategy formulation process will be used to prioritize necessary execution, allocate resources effectively, align company goals, and implement goals effectively.

Is a business strategy different from a corporate strategy? The difference lies in the strategy's focus and level of implementation.

Here are some elements that business leaders need to consider when planning a business strategy:

Company Vision and Mission

The business strategy being designed needs to align with the company's vision and mission, which have existed since its inception.

Based on the company's vision and mission, the business strategy will have a clear and well-defined focus, goals, and objectives.

Strategic Goals and Objectives

Businesses need to establish clear and well-defined goals and objectives to serve as the foundation of every business strategy.

Goals serve as a compass for measuring progress. Define the goals and objectives to be achieved using the SMART method to ensure alignment throughout the organization.

SWOT Analysis

To determine the necessary steps in a business strategy, businesses need to analyze external and internal aspects through a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis.

External and internal analysis supports strategic decision-making by identifying areas of strength and potential challenges.

Competitive and Environmental Analysis

Understanding the competitive landscape and broader environmental factors is crucial for effectively positioning a business.

Tools such as Porter's Five Forces and PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analysis help evaluate market dynamics and external influences.

Resource Allocation and Capability Assessment

Evaluating a company's resources, such as financial, human, and technological resources, as well as assessing organizational capabilities, ensures that the business can effectively execute its strategy. This involves aligning resources with strategic priorities.

Strategic Initiatives and Action Plans

Developing specific initiatives and action plans explains how the strategy will be implemented.

These plans detail the steps necessary to achieve strategic objectives.

Performance Metrics and Evaluation of Key Performance Indicators (KPIs)

To measure the designed business strategy, it is necessary to establish performance metrics in the form of Key Performance Indicators (KPIs).

Regular evaluation ensures that the business strategy remains aligned with objectives and adapts to changing conditions.

How to Develop an Effective Business Strategy?

Once you have prepared the elements of a business strategy, it's time to develop an effective business strategy.

Here's a formula for developing an effective business strategy according to Harvard Business School.

Start with Purpose

Purpose is the foundation of a strong business strategy. A clear, purpose-driven strategy will help you align your organization's efforts toward a common goal and ensure your company's vision resonates with stakeholders such as employees, customers, shareholders, and others.

A purpose-driven strategy focuses not only on profits but also considers the broader impact the company has on people and the planet.

How do you start with purpose? Begin by defining your company's mission and core values. Align strategic goals with social and environmental considerations.

Integrate purpose into the company culture, ensuring employees feel motivated by the significant impact they contribute.

For example, Unilever's Lipton brand, which built its strategy around the goal of producing sustainable tea, aligns its entire strategy to benefit people and the planet, ultimately generating profits through a strong, purpose-driven brand.

Consider the Global Context

Global economic, social, and geopolitical conditions need to be a primary consideration.

Business strategy cannot be separated from its surrounding environment. You need to continuously evaluate the global context, considering factors such as geopolitical developments, economic shifts, and market trends that could impact your strategy.

Regularly monitor international news, political events, and industry trends. Then, evaluate how global companies impact your supply chain, customer base, and business operations.

Then, build flexibility into your strategy. This allows for quick adjustments to external shocks or new opportunities.

For example, the dairy industry, especially in countries like Mongolia, would need to adjust its strategy if China decided to heavily subsidize its dairy sector, making local production less competitive.

Data Analysis and Case Studies

Your business strategy should be data-driven and supported by internal data and external case studies or economic trends.

Data analysis helps reduce cognitive bias, ensuring that every decision is based on facts rather than assumptions.

Internal data used can include company financial data, historical performance, and customer insights. This also includes analyzing sales trends, market share, profits, customer satisfaction, and product performance.

External data can include case studies of other companies' successes and failures. Study companies in your industry or other industries to understand successful strategies, especially under similar market conditions.

Take Netflix as a case study. Netflix demonstrates how a data-driven strategy can be a game-changer. Netflix used customer viewership data to identify patterns, personalize recommendations, and develop its own original content, ultimately transforming it from a DVD rental service to a global streaming leader.

Communicate Effectively

Effective communication is key to the successful execution of a business strategy. Businesses must not only design a solid strategy; they must also ensure that every stakeholder in the organization understands the plan, their role, and how they contribute.

Research shows that 95% of employees don't understand their company's strategy. For a strategy to be successful, employees must clearly understand not only the "what" and "how" of the strategy, but also the "why."

This creates alignment and empowers employees to make decisions that contribute to the company's overall goals.

Whenever a business strategy is formulated, clearly explain the vision, goals, and objectives of the strategy to all employees.

Hold regular strategy meetings, general meetings, or updates to ensure everyone is aligned.

Create feedback mechanisms such as surveys and team discussions to gauge employee understanding and engagement.

An example of a company that implements effective communication is Starbucks.

Starbucks is known for aligning employees with the company's strategy through regular communication regarding its commitment to ethical sourcing, employee well-being, and community involvement. This strategy is reinforced through internal training programs and clear messages from leadership.

Learn How to Design an Impactful Business Strategy

When to design a business strategy? In today's fast-paced market, if you only plan your business strategy once a year, you're likely to fall behind.

Look at how startups operate, they plan their business strategies in Sprints, which can be every two weeks or even once a week.

To ensure your business executes effectively, you need to learn how to design an impactful business strategy.

You can learn how to design and implement a business strategy aligned with company goals in prasmul-eli's business strategy certification program.

You'll be equipped with skills in conducting internal and external analysis, competitive strategy, the business model canvas, and more related to business strategy components.

Prepare yourself and your business leaders to design impactful business strategies.

What if the problem in your business isn't due to declining sales, but rather to poor financial management?

Managing company finances is a crucial aspect that businesses must address if they want to avoid future losses.

Financial management skills are not only essential for the finance department; it would be beneficial for every leader, from middle management, managers, and even the executive team, to have a solid foundation of financial management knowledge.

Since the COVID-19 pandemic, many companies have implemented efficiency measures, one of which is mass layoffs.

Is this a sign that the company is experiencing a decline in revenue? These efficiency measures aren't always due to declining revenue; they are necessary for the business to maintain financial health, even if the company needs to pivot.

In its research, McKinsey stated that companies generally grew by only 2.8 percent per year during the ten years before COVID-19, and only one in eight companies recorded a growth rate of more than 10 percent per year.

One way to continue to increase company growth is to establish a sound and orderly financial management system, eliminating the need for smooth cash flow.

Therefore, all employees in the company need to have knowledge of financial management. One way to do this is by enrolling employees in financial management training.

Problems Companies Face with Poor Financial Management

The worst thing a company can face with poor financial management is legal issues.

If a company's financial management is poor, it could result in the company failing to pay taxes properly in accordance with applicable regulations, leading to legal issues.

Other problems that arise with poor financial management include:

1. Disorganized Inventory Management
2. Pricing Pressure and Profit Margins
3. Unhealthy Cash Flow Problems
4. Lack of Financial Planning and Difficulty Projecting
5. Difficulty Obtaining Funding
6. Inadequate Cost Control

Why do companies need good financial management?

Financial management is a crucial foundation for healthy business growth.

Poor financial management can lead to manipulation of financial reports, which can erode investor confidence.

Such as what happened to the startup E-fishery, which was suspected of fraud by manipulating its finances. This disappointed investors and undermined the company's credibility.

To prevent bad things from happening to your company, it is important to implement good financial management.

Here are the benefits companies experience from having good financial management:

Improved Operational Efficiency

Companies with well-managed finance functions have demonstrated significant cost reductions and increased effectiveness.

A McKinsey study of hundreds of corporate finance divisions over a decade to determine how costs and effectiveness have evolved over the past 10 years shows that finance departments have reduced operational costs by almost 30%.

These cost reductions are focused on activities that add value to the business, thus contributing to business growth.

Encourage Strategic Decision-Making and Data

Strategic financial management encourages companies to employ data-driven decision-making processes that align with long-term corporate goals.

By integrating financial planning with strategic objectives, companies can assess investment opportunities, manage risk, and optimize capital structures to maximize shareholder value.

Improved Cash Flow and Capital Allocation

Effective cash management practices, such as optimizing working capital and capital expenditures, directly improve Return on Invested Capital (ROIC).

This disciplined approach not only garners investor confidence but also gives companies the flexibility to invest in growth opportunities, even during times of economic crisis.

Support for Organizational Transformation

During periods of transformation, the CFO plays a critical role in guiding the company through change.

By monitoring performance metrics, managing cash flow, and establishing key performance indicators, financial leaders ensure that strategic initiatives are executed effectively, contributing to the success of overall organizational change.

Aligning Financial and Organizational Performance

Integrating financial management with organizational performance metrics helps companies identify areas for improvement and align resources accordingly.

This holistic approach ensures that financial strategies support broader business objectives, leading to improved overall performance.

How Does Financial Management Help Unlock Business Growth Potential?

Unlocking business growth potential doesn't always involve creating new products. It can also involve improving financial management.

Improving a company's financial management unlocks business growth potential by providing the framework and tools needed for strategic decision-making, resource allocation, and risk management.

How can financial management help companies unlock business growth potential? Here's how financial management can contribute to business growth.

Helps Manage Capital Allocation and Investment Decisions

Effective financial management helps identify the best investment opportunities, ensuring capital is allocated to high-return projects or business units.

Effective financial management can also evaluate ROI (Return on Investment), which is essential for increasing market share, expanding operations, or launching new products.

Furthermore, businesses can optimize resource utilization, ensuring funds are used efficiently to generate long-term value, not just short-term profits.

Controlling Costs and Increasing Profitability

Financial management focuses on minimizing unnecessary costs while maintaining quality and productivity.

By streamlining operations, businesses can achieve higher profitability, which can be reinvested in growth initiatives.

By closely monitoring costs, revenues, and financial performance, businesses can increase their profit margins, allowing more funds to be allocated for innovation and expansion.

Improving Cash Flow Management Effectiveness and Financial Flexibility

Effective financial management ensures that businesses have sufficient liquidity to operate smoothly, even during periods of economic downturn.

This flexibility allows companies to capitalize on growth opportunities as they arise.

Becoming a Tool for Risk Management and Sustainability

Financial management helps identify and manage risks, including market, financial, operational, and strategic risks.

By minimizing risk, companies are more likely to thrive and invest confidently in future growth.

Financial management also ensures businesses focus on sustainable practices, maintaining a balance between growth and financial stability. This is essential for creating long-term shareholder value.

Improving Data-Driven Decision-Making

Financial management enables companies to forecast trends, budget effectively, and set achievable goals. This is essential for both short-term goals and long-term strategies.

By analyzing financial data, companies can track performance, adjust strategies, and stay on track to achieve their growth goals. This ensures that businesses are proactive rather than reactive.

Attracting Investment and Capital Access

Healthy and well-organized financial statements will attract investor confidence, which can increase capital inflow.

Companies that demonstrate strong financial discipline and profitability are more likely to attract investors, which can drive further growth.

This also improves the company's ability to obtain loans, funding, or equity investment, providing the necessary capital to expand operations.

What is financial management training?

After understanding the importance of financial management training, companies need to provide opportunities for their employees to improve their financial management skills, one way of doing this is by participating in financial management training.

Financial management training programs are designed for business professionals and executives to develop the ability to think, act, and make decisions in an integrated and cross-functional manner.

The existence of financial management training is motivated by the understanding that financial management knowledge is no longer solely the domain of those in the finance department. Today, all professionals, especially those at the mid-level and above, need to understand corporate financial management to achieve optimal performance.

The financial management training program conducted by Prasmul-Eli is not just ordinary training, but a certification program that equips participants with financial management skills, including:

• Financial Analysis Skills

The ability to read, understand, and analyze financial statements (balance sheets, profit and loss statements, and cash flow statements) to assess a company's financial health and performance.

• Valuation Skills

The ability to assess financial assets such as bonds and stocks, and evaluate a company's value. This is essential for investment and M&A decisions.

• Investment Decision-Making Skills (Capital Budgeting)

The ability to evaluate and decide which long-term investment projects are worth accepting or rejecting using methods such as Net Present Value (NPV), based on the concepts of Time Value of Money and Cost of Capital.

• Working Capital Management Skills

The ability to efficiently manage a company's short-term assets and liabilities to maintain liquidity and ensure smooth day-to-day operations.

• Financing Strategy Design Skills

Able to design an optimal capital structure (debt and equity mix) and determine other financing policies such as dividend and leasing policies.

By participating in this financial management training, participants can benefit from:

Improving the Quality of Decision-Making

Providing a comprehensive understanding of the theory, practice, and current issues in corporate financial management to improve the quality of decision-making and investment strategies, both short-term and long-term.

Improving Risk and Return Analysis Skills

Improving executives' ability to understand risks and returns in the financial industry.

Optimizing Investment and Funding Decisions

With a better understanding of risk and return, participants can optimize decisions related to investment opportunities and choices, funding sources, and dividend policies.

Who should participate in financial management training?

Is financial management training only for finance departments or employees with financial expertise? The answer is no.

The following are the people who should take financial management training:

• Company Business Development Teams
• Credit Analysts, Risk Management Officers, and Bank Loan Officers
• Financial Controllers, Finance Managers, Treasurers, and senior finance staff
• Fresh graduates who want to become entrepreneurs
• Managers from non-finance departments who want to improve their knowledge of financial management to support their work.
• Consultants and other professionals who want to enhance their knowledge of financial management.

How Healthy is Your Company's Financial Management?

How is your financial management? Is it still considered safe or does it need significant improvement?

By managing your finances healthily, your business will grow. If you need the right partner to improve your financial management skills, prasmul-eli is the answer.

To equip professionals with adequate financial management skills, prasmul-eli offers a financial management training certification program.

The goal is to help as many companies as possible unlock their business growth potential.

Let's improve our financial management and keep moving forward.

The development of artificial intelligence has rendered many business models irrelevant.

Innovation has become a non-negotiable requirement for companies. To innovate, companies need to implement business planning that is relevant to market conditions.

A business plan, or business development plan, that is not relevant to market conditions will expose your business to risks that can cripple performance, hinder growth, and ultimately lead to failure.

In a 2006 survey by The McKinsey-Quartely, 28% of companies had strategic plans that technically reflected the company's goals and challenges, but were ineffective in implementation.

Furthermore, the same survey results indicated that another 14% stated that their strategic plans and execution plans were not aligned.

This survey indicates that formal planning alone is not enough; it must be accompanied by proper organizational synchronization and monitoring.

Sometimes, companies internally feel that their plans or innovations are relevant to the market. However, when implemented, the opposite is true.

Therefore, businesses need a third-party perspective to help identify blind spots in their plans. Or at least, to help internal teams become aware of these blind spots.

Considering involving employees at the operational, middle management, and strategic levels in business development planning training is not a bad idea.

In fact, it's a good start so they can create business innovations that remain relevant to market conditions.

Why Are Innovation and Business Development Planning Essential for Businesses?

Innovation in today's business world is no longer about whoever is bigger wins.

Many business cases have seen large companies defeated by seemingly small business models.

For example, the disruption caused by Netflix, which toppled its major player, Blockbuster, the video rental giant with over 9,000 stores globally.

Given this, businesses that have existed for decades can no longer remain in their comfort zones. Even start-up businesses must continually innovate.

Innovation is essential for businesses for several reasons:

Changes in Market Behavior

This is crucial. The market is what contributes to a business's revenue. If the market begins to change its behavior, the business needs to adapt.

Now, with unstoppable technological disruption, consumers are changing their preferences more quickly, accustomed to digital and personalized experiences, and less likely to be loyal to a brand that is no longer relevant to them.

For example, Gojek and Grab are replacing conventional taxis because they offer more practical, transparent solutions that align with a digital lifestyle. Consumers no longer want to wait on the side of the road or argue over fares with motorcycle taxi drivers.

Technological Disruption

The baby boomer and millennial generations have witnessed the journey of technological disruption, which was initially slow, but now it's progressive.

Initially, there were only telephones in internet cafes, then it evolved into monochrome-screen mobile phones, then transformed into touchscreens, and now, artificial intelligence can also be accessed from mobile phones.

Technology has truly changed the way industries think, behave, and prefer to operate.

Take Spotify, for example, which transformed the global music industry. Subscription and streaming models shifted the dominance of CD sales and digital music downloads. Large companies like Warner and Sony Music ultimately had to adapt to streaming platforms.

Shorter Product Cycles

In the past, people would wait until a product was ready to launch.

Then, the term agile emerged, encouraging businesses to launch an MVP (minimum viable product).

Now, with AI, products can be created with increasingly shorter cycles.

Businesses that persist in sticking to old methods with long cycles will become increasingly irrelevant.

Remember BlackBerry?

Blackberry was late in changing its operating system and user interface when the iPhone and Android became popular. As a result, it lost its market share completely within a few years.

What Are the Mistakes Businesses Make in Business Development Planning?

Failing to plan means failing to achieve. That's a common refrain.

The above statement may be true if they fail to plan a business that is relevant to market needs.

Here are some business mistakes in strategic business development planning, according to a McKinsey-Quarterly survey:

Many companies fail to link planning with execution.

Although 28% of companies have a strategic plan that theoretically reflects their business goals and challenges, in reality, these plans are ineffective in execution. This shows that without concrete execution, a strategy remains a document with no real impact on business performance.

The Gap Between Strategy and Business Development Functions

Only 57% of respondents stated that their strategic planning process is truly integrated with the business development function. This means that many organizations still haven't positioned business development as a core part of their corporate strategy, thus missing out on growth opportunities that could emerge outside their core business lines.

Misalignment Between Plans and Operational Actions

As many as 14% of respondents admitted that their organization's strategy and execution plans are not aligned. This indicates a weak bridge between strategy development at the managerial level and actual implementation at the operational level. Without strong synergy, strategy will fail to translate into effective action.

A misaligned organization leads to strategy failure.

Data shows that 67% of respondents who are satisfied with their company's strategic process stated that there is good management alignment with the strategy.

Conversely, only 40% of dissatisfied respondents stated the same. This proves that without alignment between teams and functions, strategy is difficult to implement consistently and comprehensively.

How Does Business Development Training Help Your Company Develop Business Innovation?

To reduce blind spots in the process of designing innovation and business development, training programs are one alternative that companies can implement.

Conduct training such as business development training that focuses on business planning relevant to market needs, execution aligned with action, and innovation with a more agile product cycle.

Why business development training? Business development planning training will help you develop a comprehensive business plan, tailored to market conditions and existing challenges, so it remains relevant.

In addition to focusing on comprehensive business planning, this business development training can help you with the following:

1. Equipping participants with the toolset and mindset to translate strategic ideas into concrete steps.
2. This training encourages participants to view business development not merely as an opportunity-seeking function, but as a core part of the strategy-making process.
3. It fosters cross-functional thinking, so that business planning becomes the shared responsibility of all, not just a specific division.
4. It strengthens participants' ability to not only plan but also control and evaluate the implementation of business strategies through key performance indicators (KPIs) and milestone monitoring.
5. It understands how market trends, consumer behavior, and internal company strengths can form the basis for innovation that aligns with the company's long-term goals.

You can maximize the benefits above by involving your company's strategic-level employees in business development planning training from Prasmul-Eli.

prasmul-eli's business development training will encourage strategic and relevant innovation for your company.

Today, every strategic, operational, and tactical decision has a significant financial impact. However, many managers from marketing, operations, technology, and even human capital backgrounds still lack confidence when dealing with financial reports or budget discussions.

In an increasingly complex and dynamic business environment, non-financial managers are faced with challenges that are no longer limited to their functional scope.

According to a 2021 Harvard Business Review article, a lack of financial literacy makes it difficult for many managers to assess risk, understand cost impacts, and evaluate the profitability of the initiatives they manage.

This creates a gap in understanding between the finance function and other functions within the organization. Without a basic understanding of finance, managers tend to make suboptimal decisions, even risking hindering company growth.

As a business leader, you understand that sound decisions must be based on a comprehensive understanding, including an understanding of the financial implications of each strategy. Therefore, equipping yourself and your management team with basic financial literacy is not only important but also urgent.

Definition and Scope of Finance for Non-Finance

Finance for Non-Finance is a financial learning framework specifically designed for non-finance professionals to understand, interpret, and use financial information in business decision-making.

The primary objective is to bridge the gap between the managerial team and the finance function within an organization.

The scope of the Finance for Non-Finance course includes a basic understanding of financial statements such as the balance sheet, income statement, and cash flow statement.

In addition, managers are taught how to read financial ratios, understand the budget cycle, and recognize the basic principles of accounting and financial planning.

McKinsey emphasizes that when non-finance managers can speak the "language of finance," they become more effective in developing strategies, allocating resources, and communicating with the CFO and external stakeholders.

This strengthens cross-functional collaboration and improves overall organizational performance.

The Urgency of Financial Mastery for Managers

It is undeniable that every business activity, from product launches and market expansion to technology investments, will impact the company's financial condition.

When managers don't understand how a decision affects cash flow, margins, or return on investment (ROI), the decisions they make can be unsustainable or even detrimental.

According to Deloitte, strong financial literacy enables managers to identify potential inefficiencies, recognize financial warning signals, and take preventative action before problems escalate.

In this context, the ability to understand financial data is a form of organizational resilience.

Furthermore, amidst increasing demands for transparency and accountability, managers with financial literacy are able to provide stronger justification for every proposed plan or project.

This is crucial, especially when competing for budget allocations or presenting proposals to the board of directors.

Basic Financial Concepts and Principles You Must Know

Today, basic financial concepts and principles are an essential foundation for every manager, regardless of their functional background. In many organizations, operational and strategic decisions are inseparable from their financial implications.

Therefore, understanding key financial statements, ratio analysis, and evaluation tools such as break-even analysis and ROI is no longer the exclusive domain of the finance team, but a shared responsibility.

Managers must be involved in budget preparation, project evaluation, and resource allocation. Some fundamental concepts that non-finance managers must master include the following:

1. Key Financial Statements

Financial statements such as the balance sheet, income statement, and cash flow statement not only present numbers but also reflect the true story of the business.

The balance sheet provides an overview of the strength of a company's capital structure, whether it relies too heavily on debt or has unproductive assets.

The income statement shows whether the implemented business strategy is truly generating sustainable profits. Cash flow, often overlooked by non-financial managers, is actually the most vital indicator in maintaining operational continuity.

According to the Harvard Business Review, managers who don't understand cash flow tend to underestimate the risk of liquidity shortages, which is a leading cause of failure for small and medium-sized businesses.

2. Financial Ratio Analysis

Analysis of ratios such as liquidity, solvency, and profitability helps you read "early signals" of potential crises or expansion opportunities.

For example, a low current ratio can be a warning that a company is struggling to meet short-term obligations. A high debt-to-equity ratio (DER) may indicate an over-reliance on external financing.

This is where Deloitte's campaign on financial literacy comes in: enabling managers to interpret numbers into relevant insights for their divisions.

3. Break-even Analysis and ROI

Tools such as break-even analysis and return on investment (ROI) are crucial in project decision-making. By understanding the break-even point, you not only know when a project starts to generate revenue, but you can also compare the effectiveness of various initiatives based on estimated ROI.

McKinsey emphasizes that managers who can realistically assess a project's ROI will excel at selecting initiatives that truly support the company's long-term strategy.

Without this tool, decisions are often based on intuition or internal political pressure, rather than objective data.

Mastering these concepts will provide you with a financial framework that helps you assess risk more accurately and support each recommendation with a solid analytical foundation.

This not only improves the quality of your decisions but also enhances your credibility as a leader in cross-functional forums.

Benefits of Finance for Non-Finance on Performance and Decision-Making

When managers understand the fundamentals of finance, they can see the big picture and avoid silo thinking.

They focus not only on functional KPIs but also consider the strategic impact of each activity on the company's profitability and growth.

The Harvard Business Review highlights that companies with executives with high financial literacy are able to make faster, more accurate, and more impactful decisions.

This is because they can integrate a business perspective with an understanding of relevant numbers, making the resource allocation process more efficient and strategic.

Finally, financial literacy also enhances your credibility as a leader. By being able to read financial reports and critically discuss them with the finance department, you demonstrate managerial maturity and readiness to take on greater responsibilities within the organizational structure.

Are Your Company's Managers Financially Literate?

The ability to understand financial reports, analyze ratios, and assess project feasibility through ROI will broaden your strategic perspective, improve decision-making effectiveness, and strengthen your role in driving sustainable organizational growth.

In the modern business era that demands accuracy, accountability, and cross-functional collaboration, mastering financial fundamentals is no longer just an added advantage, but a pressing necessity for every manager.

This is not only for the benefit of your work unit, but also for the success of the business as a whole.

Now is the time to take concrete steps to enhance your financial competence and that of your managerial team.

By participating in prasmul-eli's Finance for Non-Finance Professionals Program, you will be equipped with practical and structured understanding to contribute more effectively in every strategic decision-making forum.