Articles - Applied Research Frontiers

Abstract

This article discusses the factors influencing the occurrence of ESG risks from the perspective of internal audit. The purpose of this research is to develop an internal administrative and administrative document for internal audit aimed at confirming that companies conduct socially responsible business. The study is based on a comparative analysis of metallurgical companies, in terms of compliance with socially responsible principles. It can be stated that the shift in the focus of the sustainable development agenda to the conduct of socially responsible business was a response to the global shocks of 2020-2022. The Covid-19 pandemic and the post-pandemic syndrome, exacerbation of socio-economic contradictions, sanctions pressure and the policy of cancelling the Russian culture and business in all areas. Based on the results of the study, the author proposed a set of internal regulations for the auditor, capable of testing the company's internal control system, as well as minimizing potential ESG risks, which, in the future, will make it possible to declare the introduction of the principles of socially responsible business into the practical activities of companies both in Russia and abroad for various areas of functioning.