Effective Corporate Social Responsibility and Environmental, Social, and Governance Incorporation Strategies

Failure to develop and implement effective strategies for integrating corporate social responsibility (CSR) and environmental, social, and governance (ESG) initiatives to manage economic risks can lead to reputational damage and hinder the ability to attract investors, customers, and talent. Organizational leaders of small and medium-sized enterprises (SMEs) need to adopt effective strategies to incorporate CSR and ESG initiatives to mitigate economic risks. Grounded in stakeholder theory and triple bottom line framework, the purpose of this qualitative pragmatic inquiry study was to explore the effective strategies employed by business leaders of SMEs to incorporate CSR and ESG initiatives for managing economic risk. Participants were six business leaders of SMEs in Nigeria who successfully used effective strategies to incorporate CSR and ESG initiatives to manage economic risk. Data were collected from semistructured interviews and field notes. Using thematic analysis, four themes emerged: partnership, employment and training, strategic leadership, and empowerment and well-being. A key recommendation for business managers is to implement effective strategies to incorporate CSR and ESG initiatives to manage economic risk. The implications for positive social change include the potential to improve the financial performance of SMEs in rural communities, thereby creating job opportunities and providing social amenities and welfare that contribute to socioeconomic development.