Abstract This study examines the political economy of Environmental, Social, and Governance (ESG) practices among textile companies in Bangladesh through comprehensive interviews with 31 textile manufacturers, representing a combined workforce of over 42, 000 employees and annual revenues exceeding 2. 8 billion. Using Stakeholder Theory as the analytical framework combined with political economy analysis, the research reveals that ESG adoption is primarily driven by international buyer requirements (89% of companies) operating within a complex political environment shaped by historical industrial tragedies and ongoing institutional development. Content analysis identified four dominant themes: buyer-driven compliance, operational efficiency gains, capacity constraints, and regulatory uncertainty amid political transitions. Statistical analysis demonstrates a strong correlation between company size and ESG maturity, with companies employing over 2, 000 workers showing 3. 4 times higher ESG adoption rates than smaller manufacturers. Companies report average ESG implementation costs of 2. 3 million for large manufacturers, representing 4. 2% of annual revenues, yet demonstrating positive returns through operational savings of 12–18% within three years. The political economy analysis demonstrates how external political pressures, particularly following the Rana Plaza tragedy, accelerated ESG adoption through stakeholder mobilization, while ongoing political transitions create both opportunities and uncertainties for regulatory development.
Mohammad Nurunnabi (Tue,) studied this question.