Integrating ESG Principles Into Corporate Reporting: Institutional Drivers and Evidence from Emerging Economies

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🔬研究者:Highlights institutional drivers and barriers of ESG adoption in a developing country context.

🏢実務担当者:Provides insights on challenges when implementing ESG reporting in emerging market subsidiaries.

🏛政策担当者:Offers evidence on regulatory and structural gaps that need attention for ESG standard harmonization.

This study investigates the integration of sustainability and Environmental, Social, and Governance (ESG) accounting into corporate reporting practices, emphasizing its role in strengthening transparency, accountability, and stakeholder engagement. Corporations and small and medium-sized enterprises (SMEs) are operating under growing pressure. Corporations have to rethink their governance and reporting systems to engage new ESG standards. This process is crucial, especially when the world economy goes through rapid technological changes, climate changes, and recurring crises. A country’s economic and social progress mainly depends on business, but business activity also creates some social and environmental side effects. These side effects increase demand for stronger accountability. Moreover, it demands more transparent governance. These challenges are especially evident in Armenia, as a developing country where SMEs make up the cornerstone of the economy. Armenian companies continue to face institutional, legal, and structural barriers on their way to adopting international standards for accounting. For developing countries, the progress of adoption of new standards is very important. But many factors should be taken into consideration. Thus, it is crucial to develop a harmonized system of reporting standards and user-friendly ESG instruments that can be adopted by businesses. The main aim of ESG instruments will be to help identify financial risks, generate developing insights, and thus create sustainability-oriented governance. Certainly, ESG standards will help to build a stronger economy and stay competitive. In this study, we have adopted a mixed-method approach. This approach combines content analysis of existing articles, bibliometric analysis, and systematic literature review (SLR). We adopted the mixed-method because jointly it will help to track the evolution of ESG reporting research. Besides this, it will help to synthesize current knowledge and assess disclosure practices. The findings of our research expose key problems and trends of the process of adopting ESG standards in Armenia, and also provide a strong basis for sustainability accounting.

• openaire https://doi.org/10.52174/1829-0280_2025.3-5first seen 2026-05-14 22:18:47