For citation:
Klaro Ramires, P. M. R., & Veselova, A. S. (2026). Regulatory and Non-Regulatory Pressures in the ESG Agenda of Russian Companies. AlterEconomics, 23(3), 699–718. https://doi.org/10.31063/AlterEconomics/2026.23-3.9
Abstract:
As Russia transitions toward a green economy and reshapes its sustainable development agenda, understanding the external and internal factors influencing companies’ adoption of ESG principles is increasingly important. The study examines the relationships between external institutional pressure, internal organizational capabilities, and the effectiveness of corporate ESG practices. It focuses on external regulatory and non-regulatory mechanisms, internal capabilities supporting strategic and operational objectives, and their effects on the implementation of comprehensive ESG practices. The empirical analysis is based on an online survey of managers and executives from 288 Russian companies conducted in 2025. The data were analyzed using partial least squares structural equation modeling (PLS-SEM). The results show that regulatory institutional pressure reduces the effectiveness of corporate ESG practices, whereas non-regulatory pressure stimulates their development. This finding challenges the assumption that conventional approaches to promoting sustainable development are universally applicable and highlights the need to reconsider the role of government regulation in heterogeneous institutional environments. Among the internal factors supporting ESG implementation, operational excellence, absorptive capacity, and exploration capability were found to be significant. These findings contribute to research on institutional pressure and organizational capabilities by showing that, in emerging markets, informal mechanisms and internal competencies may have a stronger influence than formal coercion. The results point to the importance of strengthening companies’ organizational capabilities and harmonizing industry standards rather than relying primarily on more prescriptive requirements to promote sustainable development.
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