Case & Working Paper
| Paper Number | KCB-WP-2025-007 |
|---|---|
| Title | The Integration of E, S, and G into ESG: Consumer Awareness, Supply Chains, and the Role of Governance |
| Title(Other) | |
| Author | Bowon Kim ; Quentin Vinzani |
| Publisher | |
| Abstract | ESG is a key concept in business and the economy these days. However, ESG is a combination of seemingly distinct constructs. For decades, environmental responsibility (E), social justice (S), and corporate governance (G) developed as different domains of research, policy, and practice. Environmentalism focused on climate change, pollution, and biodiversity loss. Social activists looked into social responsibility and justice issues in such areas as labor rights, inequality, and protections for marginalized groups globally. Governance scholarship concentrated on shareholder rights, fiduciary duties, and corporate accountability. Despite extensive governmental and NGO interventions, systemic progress on environmental and social objectives remained limited. This observation raises the question of why ESG integration has only become a central paradigm in the past two decades.
This paper argues that the integration of E, S, and G into ESG reflects not merely normative convergence but a structural transformation of markets. Three forces underpin this transformation. First, consumer awareness must act as a market mechanism that restructures corporate incentives, forcing firms to move beyond regulatory compliance toward proactive ESG engagement. Second, supply chains have to be the systemic arena where environmental degradation and social injustice intersect, and corporations hold leverage to implement meaningful solutions. Third, governance should be the conduit through which consumer and investor pressures are translated into enforceable corporate practices, thereby aligning market behavior with sustainability goals. Insights from stakeholder theory, global value chain analysis, and governance literature enable us to conceptualize ESG as an irreversible trajectory. It is about to redefine corporate legitimacy, competitiveness, and responsibility. This paper contributes to theory by reframing ESG as a structural market shift, not a simple extension of corporate social responsibility. We suggest implications for managers, investors, and policymakers in designing strategies integrating consumer awareness, supply chain leverage, and governance reforms into coherent ESG practices. |
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Contact : Kim, HaengRan ( hrkim@business.kaist.ac.kr )
