Journal of Sustainability Industrial Engineering and Management System
Vol. 4 No. 1 (2025): July - December

Embedding ESG into Strategic Management: Redesigning Corporate Strategy for Sustainable Competitiveness

Noch, Muhammad Yamin (Unknown)



Article Info

Publish Date
11 Dec 2025

Abstract

This study investigates how Environmental, Social, and Governance (ESG) principles are embedded into strategic management and how such integration reshapes corporate strategy to achieve sustainable competitiveness. Positioned within a qualitative literature-based research design, the study synthesizes theoretical frameworks, empirical findings, and contemporary regulatory developments to construct a comprehensive understanding of ESG-driven strategic transformation. Using an integrative review method, the analysis draws on multidisciplinary scholarship to interpret patterns across environmental stewardship, social responsibility, and governance accountability as they relate to long-term value creation. The findings reveal that embedding ESG into strategic management enhances innovation capacity, strengthens stakeholder trust, and improves organizational resilience by aligning corporate objectives with broader sustainability imperatives. The review demonstrates that firms adopting ESG-oriented strategies outperform traditional competitors in areas such as risk mitigation, operational efficiency, and market reputation. The study further identifies persistent barriers, including inconsistent ESG metrics, risks of symbolic adoption, and institutional differences across global markets, which complicate uniform integration. Overall, the research contributes theoretically by reframing ESG as a core strategic capability rather than a compliance mechanism, and it offers managerial insights emphasizing the necessity of leadership commitment, transparent governance structures, and sustainability-oriented organizational cultures. These findings underscore ESG’s emerging role as a foundational determinant of competitive advantage in an increasingly sustainability-centered global economy.  

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Journal Info

Abbrev

sustainability

Publisher

Subject

Control & Systems Engineering Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Mechanical Engineering

Description

Journal of Sustainability Industrial Engineering and Management System is an interdisciplinary academic journal devoted to the publication of high-quality research and contributions to the industrial engineering and management community. The major focus are: - To collect and disseminate information ...