Bridging sustainability and accountability: the role of ESG integration in corporate governance

Purpose Environmental, social, and governance (ESG) considerations are increasingly shaping corporate decision-making, influencing financial performance and stakeholder trust. This study examines how Ugandan firms integrate ESG principles into governance structures to enhance sustainability and long-term value creation. Using corporate governance theories and empirical data from multinational firms operating in Uganda, the study explores ESG's role in risk management, regulatory compliance, and stakeholder engagement. Design/methodology/approach A qualitative approach was employed, utilizing semi-structured interviews with 15 board members, sustainability officers, and governance experts. Document analysis of sustainability reports, corporate governance codes, and ESG policies further informs the study. Thematic analysis identifies key patterns in ESG implementation. Findings Findings revealed that regulatory compliance, stakeholder expectations, and long-term value creation drive ESG integration. Firms with strong ESG frameworks benefit from enhanced reputation and investor confidence. However, greenwashing, inconsistent reporting standards, and resistance from traditional governance structures hinder implementation. Practical implications While regulatory influence is significant, jurisdictional inconsistencies create compliance challenges. Companies embedding ESG at the board level demonstrate better sustainability performance, with leadership commitment being a key success factor. Originality/value Unlike studies focused on ESG's financial impact, this research highlights governance mechanisms driving adoption. The findings contribute to policy recommendations and strategic frameworks for strengthening ESG accountability in corporate governance.