From Sustainability DNA to a Strategically Sustainability Approach: The Role of Governance within an ESG Framework

The Thai Eastern Group Holdings (TEGH) case examines the challenges of a family-owned company when evolving into a multinational, publicly listed corporation, on whether and how to keep its sustainability mindset legacy, while adapting to more diverse shareholders and global market demands. The case highlights the evolution of an agribusiness that started as a local family-owned entity, in which sustainable practices were naturally integrated into its business operations and reflected a sustainability mindset deeply rooted in its DNA, rather than formal strategic plans. This intrinsic approach eventually facilitated TEGH’s alignment with Environmental-Social–Governance (ESG) formal principles. As the business expanded to a global business player and strategic decisions became influenced by more formal corporate governance requirements and diverse shareholder demands, possibly shorter-term, there were risks of diluting the deeply ingrained sustainability practices. The Thai family-owned company led by Ms. Sineenuch Kokanutaporn questioned whether and how to keep family business values that have been part of its identity. The case prompts critical reflections on how the ESG framework, particularly its governance dimension, may provide solutions that address the family-business owners’ concerns: ensuring that strategic decision-making balances the global market and broader shareholders’ demands, enabling continued business growth, while keeping the long-standing foundational values and sustainability goals.