Environmental, social, and governance (ESG) integration as a socially responsible investment (SRI) from a financial perspective has been discussed extensively. However, few studies discuss its impact on firms’ internal operations from the perspective of sustainable development (SD). This study aims to examine the integration of ESG into the currently prevailing business model. Twenty-nine studies were systematically reviewed. Our analysis used an input–process–output model to identify the integration process and the outcomes. The findings show that only two papers explain the implementation steps or transition process of ESG integration, while 27 papers discuss ESG integration as an outcome, including integration behaviors, advantages, practices, and critical views. Our research aims to highlight that firms adopt ESG as a response to pressure from financial markets rather than as a serious effort to integrate sustainability into their core operations. We state the need for more research into the integration process to motivate firms to reform their business models, foster sustainability, and enhance financial performance.

The adoption of environmental, social, and governance (ESG) principles has pressured firms to change their internal operations, creating conflicts regarding meeting sustainability standards. This study uses paradox theory lens to examine conflicts in ESG integration in a business model and explore resolution strategies. We used the case study of a top ESG leader in the information and technology sector—the Ricoh Group. We identified conflicts for environmental, social, and governance factors and found they adopted a synthesis strategy for conflict resolution for all ESG issues. ESG conflicts were resolved by emphasizing that ESG practices are a global requirement with ESG department support and management power. Environmental conflicts were resolved through shifting from cost-of-capital-centric to market-competitiveness-centric. Additionally, social conflicts were resolved through feedback on market needs. We state that using the ESG framework as a promise for future finance, where its adoption of ESG practices may positively impact future financial performance and might support the integration process. We stress the importance of constant feedback with all divisions about ESG regulations and their status and progress toward achieving ESG goals. We further highlight conflict-resolution strategies adopted to support the integration of the ESG framework into the business model.