KOREASCHOLAR

As ESG (environmental, social, and governance) has become a major business trend, many firms put ESG into their business practice to fulfill market and stakeholders' demands (Wang et al., 2016). With a growing emphasis on ESG, firms must decide how to integrate ESG into their organizational strategy. Although ESG is a popular business trend, it is meaningless if ESG reduces firm value. For successful ESG implementation, ESG strategy must be integral to the business model (Duque-Grisales and Aguilera-Caracuel, 2021). With the integration of ESG into the firm's business process, sustainable activities enable firms to improve their economic and social performance by tapping into the synergies between business and societal agendas (Duque-Grisales and Aguilera-Caracuel, 2021). Core competence refers to an organization's accumulated strength compared to other organizations in the industry (Wheelen, 2019). It is the unique integration of leadership, technologies, specialized skills and knowledge, organizational culture, and the working possesses (Wheelen, 2019). Even though the literature on ESG emphasizes integrating ESG into firms’ core capabilities, there are only a few studies that developed ESG implementation and integration framework in specific dimensions (Fatima & Elbanna, 2022) and the literature shows mixed results. Since previous research presents unclear results regarding ESG implementation and firms' core competencies, this study aims to 1) investigate how ESG strategy could integrate with firms' core competencies and 2) clarify ESG embeddedness drivers. The findings provide significant implications for academics and managers by clarifying how firms can enhance their value through ESG with firms' core competencies.

• Jeong-Bin Whang(Korea University Business School, Republic of Korea)
• Jong-Ho Lee(Korea University Business School, Republic of Korea)