Sustainable Corporate Strategy under ESG-Oriented Regulatory Environments

Authors

  • Carlos Mendez Department of Business Administration, University of New Mexico
  • Sun-Ho Kim Department of Supply Chain Management, Arizona State University

Keywords:

Sustainable Corporate Strategy, ESG Regulation, Systems Architecture, Socio-Technical Governance, Corporate Resilience, Regulatory Compliance, Large-Scale Systems.

Abstract

The global transition toward carbon neutrality and social equity has precipitated a fundamental shift in corporate governance, moving from voluntary Environmental, Social, and Governance (ESG) disclosures to mandatory, high-fidelity regulatory requirements. This paper investigates the systemic architectural transformations required for enterprises to maintain sustainable corporate strategies within these increasingly stringent ESG-oriented regulatory environments. We analyze the structural trade-offs inherent in aligning legacy industrial infrastructures with modern sustainability mandates, focusing on the interplay between data-driven compliance and long-term strategic resilience. The research provides a deep explanatory analysis of the socio-technical infrastructures necessary to support transparent ESG telemetry, emphasizing the role of large-scale systems engineering in mitigating the risks of "greenwashing" and systemic non-compliance. By synthesizing perspectives from institutional theory, systems engineering, and artificial intelligence, this work elucidates the tensions between immediate financial optimization and the long-term robustness of the digital-physical enterprise. We investigate the deployment of integrated reporting systems, the governance of distributed supply chain transparency, and the ethical implications of algorithmic sustainability assessments. Furthermore, the paper addresses the policy implications of cross-jurisdictional ESG regulations, advocating for a design philosophy that treats sustainability as a primary engineering constraint rather than a secondary reporting obligation. This study concludes that the future of corporate strategy lies in the seamless integration of ecological health and social fairness into the core operational architecture of the global firm, providing a theoretical framework for the next generation of resilient and compliant digital enterprises.

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Published

2026-03-05

How to Cite

Carlos Mendez, & Sun-Ho Kim. (2026). Sustainable Corporate Strategy under ESG-Oriented Regulatory Environments. International Journal of Business and Management Studies, 1(1). Retrieved from https://isipress.org/index.php/IJBMS/article/view/49