THEORETICAL FOUNDATIONS FOR DESIGNING A SUSTAINABLE DEVELOPMENT MODEL

Abstract

This article explores the theoretical foundations and practical approaches to designing a scalable model of sustainable development that responds to contemporary global and local challenges, including war, ecological instability, and rising social expectations. It substantiates the urgent need to transform ESG principles from a formal reporting framework into a fully integrated management system embedded in operational processes and strategic decision-making. The research emphasizes that sustainability today cannot remain a peripheral activity but must become a central driver of resilience and competitiveness. A comparative analysis of strategic models (ESG+O, 4P, SDG Mapping, and Value Driver Tree) is conducted, highlighting their conceptual advantages, methodological limitations, and practical implementation tools. This analysis demonstrates that while each model offers valuable insights, their effectiveness depends on contextual adaptation and integration into corporate governance structures. Special attention is devoted to the Ukrainian context, where enterprises, particularly logistics companies, face wartime disruptions, resource constraints, and heightened stakeholder expectations. The study proposes a structured ESG operating model encompassing strategic planning, governance, operational integration, and transparent reporting, ensuring that sustainability principles are not only declared but systematically enacted. Key components are identified to guarantee effective implementation at the business unit level, including employee motivation, risk management, financial forecasting, and stakeholder communication. The findings emphasize that ESG should evolve into a strategic value-creation tool, enabling companies to align sustainability with core business objectives, enhance transparency, strengthen trust among partners and communities, and build long-term competitive advantage in volatile environments. Ultimately, the article argues that the integration of ESG into everyday business practice represents not only a response to external pressures but also a proactive pathway to innovation, resilience, and sustainable growth.