The Role of ESG Integration in Enhancing Corporate Competitiveness: A Conceptual Framework

The emergence of Environmental, Social and Governance (ESG) concept has transformed the responsibility of firms towards Environment, Society and Governance from a peripheral exercise in corporate responsibility to a strategic necessity that has changed the way corporates compete with each other. The ESG framework when integrated into organizational process can enhance the competitiveness of companies by improving reputation, goodwill, reducing risks and encouraging innovation in various operational areas. The study attempts to propose a conceptual framework integrating stakeholder theory, Resource-Based View, Institutional Theory and Legitimacy Theory enabling the corporates to strengthen their competitiveness in ever dynamic environment. The conceptual framework emphasis the need for viewing ESG not as a legal compliance but as a strategic tool that can strengthen resilience, market access and long-term value creation of corporates.