The Social Pillar οf ESG: A Cross-National Study of Italy and Kazakhstan
Purpose: We investigate how the social dimension of sustainability within the Environmental, Social, and Governance (ESG) framework is perceived and practiced by businesses in two contrasting national contexts: Italy and Kazakhstan. Focusing on the “social” pillar—labor rights, inclusion, community engagement, and welfare—the study considers how cultural values, historical legacies, and institutional arrangements shape corporate responsibility and give rise to different interpretations and divergent trajectories of ESG adoption. Design/methodology/approach: We employ an exploratory design, based on two parallel surveys conducted between May and July 2025 with 194 firms and professionals: 80 in Italy and 114 in Kazakhstan. The questionnaire combined multiple-choice questions, Likert-type scales, and open-ended items, covering (i) awareness and understanding of ESG; (ii) current implementation across environmental, social, and governance dimensions; (iii) organizational maturity in adopting ESG; (iv) barriers and incentives; and (v) perspectives for future development. Descriptive statistics were complemented by deductive–inductive content analysis of qualitative responses to capture cultural framings and moral reasoning patterns. Findings: The results highlight clear institutional and cultural contrasts: in Italy, despite strong EU regulation (NFRD, CSRD, ESRS) and traditions of labor protection and civic humanism, ESG adoption remains fragmented, particularly among resource-constrained SMEs. In Kazakhstan, by contrast, awareness exceeds 80% and implementation is more advanced, reflecting Asian communitarian values and state-led welfare traditions, even in the absence of a fully consolidated framework. A paradox thus emerges: Kazakhstan demonstrates strong operational engagement despite regulatory gaps, while Italy has structured EU-driven regulation but struggles with widespread implementation. Practical implications: The study offers guidance for policy-makers and business leaders. In Kazakhstan, it suggests consolidating ESG rules beyond finance and state-owned firms to secure long-term adoption. In Italy, it highlights the need to ease bureaucracy, provide fiscal incentives, and develop simple reporting tools for SMEs. In both contexts, training and ESG literacy emerge as crucial to turn awareness and cultural values into consistent practice. Originality/value: This paper advances the ESG debate by highlighting the social pillar through a cross-national comparison of two contrasting cultural and institutional contexts. It shows how historical and value-based legacies shape corporate responsibility and generate different trajectories of adoption. By offering new evidence from underexplored settings, the study illustrates how global ESG frameworks interact with national business ecosystems and provides practical insights for policymakers and practitioners.