Philosophical Concepts Related to Business Ethics and Their Implications on Firm’s Environmental, Social, and Governance (ESG) Practices

This study investigates the intersection of philosophical ethics and firm’s Environmental, Social, and Governance (ESG) practices, intending to elucidate how foundational ethical theories can enhance ESG strategies within contemporary business contexts. Despite the growing global adoption of ESG strategies, there is a significant gap in systematically applying philosophical ethics to address the complex moral challenges businesses face. This investigation employs a rigorous review of relevant articles from reputable indexed journals from Scopus, ScienceDirect and Web of Science. These articles are focused on the implications of philosophical concepts, including utilitarianism, deontology and virtue ethics, and firm’s ESG practices. Each article’s theoretical implications and findings are systematically examined and analysed to provide a comprehensive understanding and implications of the ethical dimensions of ESG practices. Based on a deductive thematic theory-driven analytical approach, the findings reveal that utilitarianism encourages firms to prioritize long-term ethical business actions such as ethical investment, deontology emphasizes adherence to ethical duties and regulatory standards, and virtue ethics fosters integrity and trust through character virtues. However, the study also highlights the complexities businesses face in balancing these ethical considerations, given competing interests and practical constraints. The research underscores the need for companies to integrate philosophical ethics into ESG strategies, not only to meet regulatory requirements but also to enhance the credibility and effectiveness of their sustainability efforts. By synthesizing these ethical theories within the ESG framework, firms can build stronger relationships with stakeholders and contribute to a more sustainable and ethical corporate landscape.