From Compliance to Transformation: How SMEs in the Global South Integrate ESG in Business Strategy
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Abstract
The study was conducted to identify the specifics of implementing sustainable development practices in the processes of transforming business strategies of small and medium-sized enterprises in the Global South. These transformations are necessary to improve the quality of life of people in the region, promote economic and social development, and adapt business practices to modern conditions.
The study is based on a qualitative analysis of cases of 7 small and medium-sized enterprises from Kazakhstan, Turkey and Malaysia, conducted using semi-structured interviews and thematic analysis.
The study revealed a significant lag of small and medium-sized enterprises in Kazakhstan, Turkey and Malaysia in the process of implementing sustainable development principles in terms of socialisation, and to a large extent in terms of expanding corporate governance practices and business transparency.
The study formed recommendations for the countries of the Global South to overcome barriers in implementing ESG principles and practices. These recommendations are for both governments and enterprises that are transforming business models and have encountered problems in planning sustainable development. This is one of the first comparative qualitative studies on ESG adoption in SMEs in Kazakhstan, Turkey, and Malaysia based on primary interview data.
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