Integrating ESG and DEI into Corporate Strategy: A Systematic Literature Review and Framework for Corporate Performance

This study examines the strategic integration of Environmental, Social, and Governance (ESG)
and Diversity, Equity, and Inclusion (DEI) within corporate strategy and its implications for
corporate performance. Despite the growing prominence of ESG and DEI in management
discourse, their combined influence on firm-level outcomes remains fragmented in the literature.
Addressing this gap, the study conducts a systematic literature review of existing research to
synthesize key themes and theoretical perspectives related to ESG–DEI integration.
Using a structured review methodology, relevant peer-reviewed articles and secondary data
sources are analyzed to identify patterns in how organizations incorporate ESG and DEI into
strategic decision-making. Building on the review, the study develops a conceptual framework
linking ESG and DEI integration to corporate performance through key mediating mechanisms,
including stakeholder engagement, organizational capabilities, and reputational capital. The
framework proposes that firms adopting a holistic and strategically aligned ESG–DEI approach
are more likely to achieve enhanced financial and non-financial performance.
This research contributes to the management literature by offering an integrated perspective on
ESG and DEI and providing a foundation for future empirical research. It also offers practical
implications for managers seeking to align sustainability and inclusion initiatives with broader
organizational performance objectives.