An Organizational and Operational Capability and Maturity Assessment for SMEs in Emerging Markets Toward the ESG Criteria Adaptation

Abstract

The introduction of the ESG criteria revolutionized business management and leadership practices and strategies. Even though the ESG has been introduced to contribute towards more environmental, sustainable, and ethical business governance it seems that the effort needed to join this initiative and benefit from the privileges that come along restricts SMEs, especially in emerging countries, to be part of this movement. This research highlights this ESG discrimination among SMEs and MNEs and intends to bridge this gap by identifying, on a smaller scale, activities that reflect the ESG criteria and can be implemented by the SMEs at organizational and operational levels. Such an approach allows SMEs to record, report and receive credit, visibility, and recognition for their sustainable, social, and ethical governance efforts and actions, potentially enlarging their customer base and attracting the investments needed to further develop themselves.