International Journal For Multidisciplinary Research
E-ISSN: 2582-2160
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A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal
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Volume 8 Issue 3
May-June 2026
Indexing Partners
ESG (Environmental, Social, Governance) regulations and corporate strategy
| Author(s) | Ms. Mahima Rana |
|---|---|
| Country | India |
| Abstract | Environmental, Social, and Governance (ESG) regulations have transformed the relationship between corporate compliance and strategic management. ESG is no longer confined to voluntary corporate social responsibility initiatives; it has become a central component of corporate governance, risk management, capital allocation, stakeholder engagement, and long-term value creation. Increasing regulatory scrutiny, investor expectations, climate-related risks, social inequality concerns, and governance failures have compelled firms to integrate ESG principles into their core strategic decisions. This paper examines how ESG regulations influence corporate strategy through environmental compliance, social responsibility, and governance architecture. It analyzes the strategic implications of climate disclosures, emissions reduction obligations, labor rights protections, stakeholder accountability, board oversight, executive incentives, and sustainability reporting frameworks. It further evaluates the role of measurement, reporting, and assurance systems in strengthening ESG implementation and institutional legitimacy. The study argues that ESG compliance should be understood not merely as a legal obligation but as a strategic opportunity for innovation, resilience, investor confidence, and competitive advantage. Case studies of H&M, Marks & Spencer, and Telia illustrate how ESG can function as a driver of operational excellence and sustainable growth. The paper concludes that firms which successfully integrate ESG into governance structures and strategic planning are better positioned to achieve long-term legitimacy and sustainable business success. |
| Keywords | ESG Regulations, Corporate Strategy, Sustainability, Environmental Compliance, Social Responsibility, Corporate Governance, Risk Management, Stakeholder Engagement, ESG Reporting |
| Published In | Volume 8, Issue 3, May-June 2026 |
| Published On | 2026-05-18 |
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E-ISSN 2582-2160
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IJFMR DOI prefix is
10.36948/ijfmr
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