LEVERAGING ESG, DIGITAL CAPABILITIES, AND WORKFORCE DEVELOPMENT FOR SUSTAINABLE COMPETITIVE ADVANTAGE

Abstract

In a era characterized by increasing stakeholder demands for sustainability, transparency, and corporate accountability, companies encounter a strategic necessity to merge Environmental, Social, and Governance (ESG) priorities with digital transformation and the development of human capital. This paper examines the existing literature and formulates a conceptual framework wherein digital transformation and human capital capabilities collaboratively affect ESG performance, which subsequently mediates the influence on firm value and sustainable growth over the long term. We contend that digital transformation improves resource allocation, operational efficiency, transparency, and green innovation, thus enhancing ESG results, while human capital offers the skills, ethical perspective, and strategic understanding essential for fully utilizing technological capabilities. The framework delineates critical mechanisms and boundary conditions, underscores gaps for future empirical investigation, and highlights the significance of emerging market environments. Ultimately, the study presents practical managerial recommendations and a strategic plan for organizations seeking to implement integrated ESG, digital transformation, and human capital strategies to secure a sustainable competitive edge.