Research of institutional barriers and drivers of implementation of principles of sustainable development at the corporate governance level

Abstract

The study is devoted to identifying institutional barriers and drivers of implementing sustainable development principles at the level of corporate governance and assessing their impact on companies strategic decisions. The relevance is determined by the growing regulatory pressure, investor expectations, and social demand, combined with the inertia of business practices and the short-term orientation of capital markets. The purpose was to systematize external and internal environmental factors, build integral indicators of ESG implementation, and identify governance mechanisms capable of accelerating transformation. The scientific novelty lies in combining quantitative and qualitative analysis into a single explanatory model that links institutional context, industry differences, and corporate governance characteristics. Materials and methods included a mixed design: a structured survey of 185 large companies from key sectors of the economy with assessment of the significance of drivers and barriers on a Likert scale, as well as semi-structured interviews with 25 experts (sustainability officers, independent directors, investors). Quantitative analysis was performed in SPSS using descriptive statistics, Pearson correlations, and regressions; additionally, an industry-level integral ESG index was calculated. The qualitative part relied on thematic analysis of transcripts and triangulation with survey data to test the robustness of findings and clarify the mechanisms of factor influence. The results showed the dominance of external incentives: regulatory pressure and investor requirements were assessed as the most significant drivers, while internal motives of innovation and efficiency ranked lower. Among the barriers, the leading factors were the short-term orientation of capital markets and the absence of unified reporting standards, while resistance within corporate culture had a pronounced restraining effect. Sectorally, the highest ESG index was recorded in IT and telecommunications, and the lowest in energy. At the governance level, the strongest correlation with ESG integration was demonstrated by the presence of a dedicated ESG committee; the share of independent directors and gender diversity were also significant predictors. The discussion interprets ESG transformation as predominantly reactive, carrying risks of formalism and greenwashing if institutional barriers are not compensated by strong governance mechanisms and standardized practices. Practical implications include prioritizing the creation of ESG committees, building board competencies, standardizing non-financial reporting, and addressing the investment decision-making horizon. Limitations of the study are related to self-reporting, industry and country specifics; prospects include longitudinal studies, causal modeling, and analysis of regulatory scenarios in comparable jurisdictions.