Shared Value in the ESG Era: Corporate Accountability and Development Justice in Emerging Economies

Abstract

This article critically examines the relationship between Environmental, Social, and Governance (ESG) frameworks and the concept of shared value within the context of emerging economies. While ESG has gained prominence as a dominant paradigm for evaluating corporate sustainability and responsibility, its capacity to deliver meaningful developmental outcomes remains contested. At the same time, the concept of shared value has been advanced as a strategic approach through which firms align profit-making with social impact. However, the convergence of ESG and shared value has not been sufficiently interrogated, particularly in contexts characterised by institutional fragility, regulatory asymmetries, and persistent socio-economic inequality. Drawing on an interdisciplinary theoretical methodology, the article integrates corporate governance theory, stakeholder theory, political economy, and international human rights law. It argues that ESG operates primarily as a soft governance mechanism lacking enforceability, while shared value remains strategically promising but institutionally under-embedded. The analysis demonstrates that, in emerging economies, these frameworks often produce localised benefits without addressing structural inequalities or redistributing power. The article proposes a reconceptualisation of shared value as an accountability-driven and legally embedded framework aligned with development justice and the state's duty to protect.