Environmental, Social, and Governance Integration into the Business Model: Literature Review and Research Agenda

Abstract

Environmental, social, and governance (ESG) integration as a socially responsible investment (SRI) from a financial perspective has been discussed extensively. However, few studies discuss its impact on firms’ internal operations from the perspective of sustainable development (SD). This study aims to examine the integration of ESG into the currently prevailing business model. Twenty-nine studies were systematically reviewed. Our analysis used an input–process–output model to identify the integration process and the outcomes. The findings show that only two papers explain the implementation steps or transition process of ESG integration, while 27 papers discuss ESG integration as an outcome, including integration behaviors, advantages, practices, and critical views. Our research aims to highlight that firms adopt ESG as a response to pressure from financial markets rather than as a serious effort to integrate sustainability into their core operations. We state the need for more research into the integration process to motivate firms to reform their business models, foster sustainability, and enhance financial performance.

Open Innovation and Sustainable Innovation Performance: The Moderating Role of IP Strategic Planning and IP Operation

“…On one hand, existing literature mostly focuses on the economic effects of innovation activities [5][6][7][8], whereas both environmental and social dimensions of sustainable innovation performance have received scant attention. With the increasing demand for sustainable products and changing governmental policies, less negative environmental effects and more social responsibility have taken on an exciting significance [9][10][11]. In this sense, we argue that sustainable innovation performance should comprehensively consider economic returns, environmental concerns, and social issues to meet the needs of present and future generations.…”

“…Against this background, we aim to identify how open innovation impacts sustainable innovation performance and how IP management approaches moderate the relationship between open innovation and sustainable innovation performance. In this paper, we consider sustainable innovation performance as the outcome of innovation activities in terms of economic (e.g., financial benefits), environmental (e.g., reduction of energy consumption and pollution), and social aspects (e.g., improvement of working conditions and safety) [10,11,28]. We argue that sustainable innovation performance is the result of the interplay between open innovation (external partnering and external sourcing) and IP management approaches (IP strategic planning and IP operation).…”

Incorporating the ESG framework to analyse entrepreneurial opportunities among tribal people

“…Incorporating ESG principles into business operations involves considering environmental, social and governance factors when making decisions and developing strategies. This approach aims to generate sustainable value, minimize potential risks and uphold ethical business standards (Aldowaish et al ., 2022). This framework allows for a detailed evaluation of business and entrepreneurship opportunities within tribal communities.…”

ESG investing in the AI era: Features of developed and developing countries

“…ESG is a systemic approach to business management, which covers and reconsiders through the lens of the SDGs (orients toward their support) environmental (E: with the focus on corporate environmental responsibility), social (S: with the focus on corporate social responsibility), and corporate (G: with the focus on financial management, maximization of profit and increase in economic effectiveness of business) management. Thus, ESG investment is a process of financing sustainable development (Aldowaish et al, 2022;Ge et al, 2022).…”