Integrating ESG-driven risk intelligence: A strategic framework for sustainable financial performance and CSR alignment in emerging economies

Syed Mohammad Faisal; Ahmad Khalid Khan

doi:10.65453/ajbmr.v15i1.1384

Authors

Syed Mohammad Faisal Department of Management, Applied College, Jazan University, Saudi Arabia.
Ahmad Khalid Khan Department of Management, Applied College, Jazan University, Saudi Arabia.

DOI:

https://doi.org/10.65453/ajbmr.v15i1.1384

Keywords:

Corporate Social Responsibility (CSR), Emerging economies, ESG integration, Risk intelligence, Sustainable finance

Abstract

If companies aspire to sustainable profitability amidst rapidly shifting global priorities, they will need to incorporate Environmental, Social, and Governance (ESG) metrics into their risk intelligence frameworks. This study provides a holistic framework for connecting ESG-induced risk assessment to Corporate Social Responsibility (CSR) congruence, including the contexts of developing countries such as Brazil, South Africa, and India. SmartPLS is quantitative research method that uses structural equation Modelling (SEM) and collects data from a diversified set of professionals across several sectors. This study offers valuable insights into how ESG-informed risk data can help capital allocation, increase stakeholder trust, and reinforce organizational resilience. The results indicate that companies with integrated ESG risk policies tend to be more proficient in mitigating operational and systemic risks and/or driving corporate financial sustainability and reputational integrity. The intentional integration of CSR into the ESG ecosystem can promote ethical governance and enhance fair value creation. This study significantly contributes to the sustainability finance debate by offering substantial ramifications for finance executives, corporate strategists, and lawmakers to increase the future profitability of their business models through products and institutions in volatile and high-return industries. It explains that goals are used as a compass to help navigate profitability. In addition, the agenda emphasizes the pivotal role of stakeholder engagement and cross-sector collaboration in strengthening ESG-driven corporate strategies. By aligning internal policies with external expectations, companies can better anticipate regulatory changes, investor preferences and societal demands. This alignment is particularly important in emerging markets, where institutional voids, political uncertainty, and socioeconomic disparities amplify risks. Incorporating ESG risk intelligence aids in compliance and focuses on competitive advantage by fostering transparency, innovation, and long-term value creation. As organizations increasingly operate in interconnected economies, the ability to balance profitability and responsibility is a defining factor for sustainable business excellence. Hence, this study aims to provide a significant contribution to integrating ESG-driven intelligence.

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