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

Author

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  • Alaa Aldowaish

    (Graduate School of Media and Governance, Shonan Fujisawa Campus, Keio University, Fujisawa 252-0882, Japan)

  • Jiro Kokuryo

    (Graduate School of Media and Governance, Shonan Fujisawa Campus, Keio University, Fujisawa 252-0882, Japan)

  • Othman Almazyad

    (Department of Business Administration, School of Political Science and Economics, Shonan Campus, Tokai University, Hiratsuka 259-1292, Japan)

  • Hoe Chin Goi

    (NUCB Business School, Nagoya University of Commerce and Business, Nagoya 460-0003, Japan)

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.

Suggested Citation

  • Alaa Aldowaish & Jiro Kokuryo & Othman Almazyad & Hoe Chin Goi, 2022. "Environmental, Social, and Governance Integration into the Business Model: Literature Review and Research Agenda," Sustainability, MDPI, vol. 14(5), pages 1-20, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:5:p:2959-:d:763244
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    2. Rahimi Mansoor & Shaista & Subhan Ullah & Rovaid Ullah, 2024. "The Impact of ESG on Financial Performance of Top 100 Companies of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(3), pages 14-20.
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    5. Li-Min Chuang & Yu-Po Lee, 2023. "Toward Sustainable Development: The Causes and Consequences of Organizational Innovation," Sustainability, MDPI, vol. 15(10), pages 1-22, May.
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    8. Catalin Popescu & Eglantina Hysa & Alba Kruja & Egla Mansi, 2022. "Social Innovation, Circularity and Energy Transition for Environmental, Social and Governance (ESG) Practices—A Comprehensive Review," Energies, MDPI, vol. 15(23), pages 1-28, November.
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    10. Salvatore Esposito De Falco & Raffaella Montera & Sabrina Leo & Francesco Laviola & Pietro Vito & Domenico Sardanelli & Gianpaolo Basile & Giulia Nevi & Raffaele Alaia, 2024. "Trends and patterns in ESG research: A bibliometric odyssey and research agenda," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 3703-3723, September.
    11. Huiying Zhang & Xiguang Chen, 2022. "Open Innovation and Sustainable Innovation Performance: The Moderating Role of IP Strategic Planning and IP Operation," Sustainability, MDPI, vol. 14(14), pages 1-15, July.
    12. Xin Xu & Yi Xie & Feng Xiong & Yan Li, 2022. "The Impact of COVID-19 on Investors’ Investment Intention of Sustainability-Related Investment: Evidence from China," Sustainability, MDPI, vol. 14(9), pages 1-37, April.
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