Socio-economic sustainability strategy from the perspective of the agricultural business in developing countries

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Abstract

Agriculture is essential for economic development worldwide, particularly in developing countries, where around 2.5 billion people, or 80 percent of the population, depend on it for their livelihoods (Sarkar et al., 2021; Wijerathna-Yapa & Pathirana, 2022). In Thailand, agriculture is integral to both the economy and society, employing approximately 25 million people. However, agricultural workers often earn lower average incomes compared to those in other sectors (Digital Economy Promotion Agency [DEPA], 2020). By adopting environmental, social, and governance (ESG) principles, Thailand’s rice industry can optimize resource use, reduce costs, and enhance competitiveness. This study aims to explore the application of ESG within Thailand’s rice production supply chain, evaluate its impact on sector competitiveness, and identify best practices for integration. Utilizing qualitative methods, including content analysis and interviews with 30 participants, the findings reveal that ESG adoption presents substantial opportunities for improving sustainability and competitiveness. By fostering environmental stewardship, promoting social welfare, and strengthening governance, ESG can help farmers and businesses tackle challenges such as resource inefficiency and market volatility. Furthermore, the research highlights the importance of public-private partnerships and supportive policies in establishing a sustainable, ESG-driven rice production system, which could serve as a model for other developing nations aspiring to implement sustainable agricultural practices.

Keywords: Sustainable Development, Environmental and Social Governance, ESG, Innovative Practices, Rice Industry

Authors’ individual contribution: Conceptualization — N.R. and R.S.; Methodology — N.R. and R.S.; Validation — N.R. and R.S.; Formal Analysis — N.R. and R.S.; Investigation — N.R. and R.S.; Resources — N.R. and R.S.; Data Curation — N.R. and R.S.; Writing — Original Draft — R.S. and T.C.; Writing — Review & Editing — N.R. and R.S.; Visualization — N.R., R.S., and T.C.; Supervision — R.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: F63, O38, P48, Q56

Received: 03.06.2024
Revised: 22.09.2024; 11.10.2024; 28.01.2025
Accepted: 31.01.2025
Published online: 05.02.2025

How to cite this paper: Rattanasuksri, N., & Sonsuphap, R., & Chatikavanij, T. (2025). Socio-economic sustainability strategy from the perspective of the agricultural business in developing countries. Corporate Governance and Sustainability Review, 9(1), 8–17. https://doi.org/10.22495/cgsrv9i1p1