ESG and Sustainable Business Practices: A Comprehensive Review

Abstract

Environmental, Social, and Governance (ESG) principles have become essential components of modern business strategy. As stakeholders increasingly demand transparency, ethical conduct, and environmental stewardship, organizations integrate ESG frameworks to enhance long-term resilience and profitability. This review paper examines how ESG influences sustainable business practices, using insights from 25 academic sources. It discusses the evolution of ESG, its theoretical foundations, and its significance for corporate strategy, risk management, and stakeholder engagement. A comparative table highlights differences between traditional CSR and modern ESG practices. The findings demonstrate that ESG drives innovation, enhances corporate reputation, reduces risk, and aligns firms with global sustainability expectations. The paper concludes that ESG-integrated business models represent a pathway to sustainable competitive advantage and responsible corporate governance.