Securitization and Utilitarianism in Carbon Exchange Policy: A Critical Analysis of Indonesia’s Regulatory Framework

Abstract

Background: Corporate sustainability has become a major concern in emerging markets as companies face increasing pressure to comply with economic regulations, environmental, social, and governance (ESG) standards, and stakeholder expectations. However, weak legal enforcement, fragmented regulatory frameworks, and inconsistent ESG implementation often limit corporate accountability and sustainable business performance. Objective: This study aims to examine the relationship among economic law governance, ESG pressure, and corporate sustainability performance in emerging markets. Methods: This study uses a conceptual and literature-based approach by synthesizing recent scholarly discussions on economic law, ESG implementation, corporate governance, regulatory quality, and sustainability management. Results: The findings indicate that strong economic law governance contributes to legal certainty, improves corporate accountability, and encourages companies to integrate ESG principles into their business strategies. ESG pressure from regulators, investors, consumers, and other stakeholders also promotes transparency, risk management, and long-term value creation. Nevertheless, the effectiveness of ESG implementation depends on regulatory consistency, institutional enforcement, and managerial commitment. Conclusion: Economic law governance and ESG pressure play important roles in strengthening corporate sustainability performance. This study contributes to the literature by integrating legal, economic, and management perspectives to explain how responsible business practices can be advanced in emerging markets.