Operationalizing Ethical Governance in Emerging‐Economy Social Business Partnerships: Stakeholder Engagement and Sustainable Value Creation in the Case of Grameen Danone Foods Limited

ABSTRACT This study examines how ethically guided corporate philanthropy generates multidimensional sustainability outcomes in emerging‐economy social‐business contexts. Using the case of Grameen Danone Foods Limited (GDFL), it integrates stakeholder theory (ST), the triple bottom line (TBL), and the ethical trade‐off framework (ETOF) to explain how ethical governance translates stakeholder obligations into organizational action and adaptive sustainability outcomes under conditions of institutional complexity. A qualitative explanatory single‐case study, drawing on semistructured interviews, focus group discussions, observations, and organizational documents, employs a process‐tracing approach to reconstruct the sequential governance mechanisms through which ethical intent is transformed into organizational practice. The findings demonstrate that sustainable value creation does not emerge as a linear consequence of philanthropic intention. Instead, it evolves through recursive interactions among ethical governance, strategic philanthropic deployment, stakeholder engagement, corporate–social business partnerships, operational execution, adaptive learning, and TBL outcomes. Ethical governance functions as a dynamic mechanism through which organizations negotiate competing stakeholder interests, manage ethical trade‐offs, and continuously recalibrate decisions in response to changing institutional and organizational conditions. These recursive governance processes enable organizations to balance social, environmental, and economic objectives while maintaining stakeholder legitimacy and long‐term sustainability. This study contributes to the literature on social business, business ethics, and corporate social responsibility by explaining how ethical governance operates as the mechanism through which stakeholder obligations are translated into multidimensional sustainability outcomes. By integrating ST, the TBL, and the ETOF within a process‐tracing design, the study advances a mechanism‐based understanding of corporate philanthropy as an adaptive governance system rather than a static compliance or reporting function.