Corporate Sustainability Performance from the Perspective of Global Economic Development Differences: Opportunities and Institutional Dilemmas in Developing Countries

Macroeconomic Perspective: Regional Heterogeneity and Cyclical Evolution of Sustainability Strategies

The global economy is undergoing a structural transformation driven by climate change, technological iteration, and growing public awareness. In this context, Corporate Sustainability Performance (CSP) has evolved from a mere display of social responsibility into a key strategic element determining long-term corporate competitiveness and market position. However, the literature shows that the adoption and realization of such strategies do not proceed at the same pace across all economies; their differences are deeply rooted in the structural endowments of the macroeconomic development stage.

Driving Mechanisms of Economic Development Stages on Corporate Sustainability Practices

This systematic literature review (SLR) aims to investigate how levels of economic development (such as those classified by the World Bank as high, middle, and low-income countries) shape the formation and outcomes of corporate sustainability strategies. Research indicates that the stage of economic development is one of the core variables influencing CSP performance. In developed economies, with their mature institutional frameworks, deep educational systems, and high levels of technological innovation, companies are more easily able to systematically integrate environmental, social, and economic factors into their governance structures, forming a deep integration from stakeholder theory to circular economy models. At this stage, the intrinsic link between Corporate Social Responsibility (CSR) and long-term profitability goals is clearer, and innovation and strong governance structures become catalysts for accelerating sustainability achievements.

In contrast, emerging markets like India, which are in the developing stage, exhibit a "catch-up" trend in their corporate sustainability practices. Although social attention to sustainability has significantly increased—for example, up to 88% of companies in Indonesia have started publishing sustainability reports, marking an initial awakening of transparency awareness—this progress is not without obstacles. Research reveals structural barriers faced by developing countries, including:

1. Lag in Institutional Implementation: Despite clear policy direction, the fragmentation of regulatory systems and insufficient enforcement efforts mean that companies still face significant resistance at the level of compliance and actual operation. 2. Cognitive Gap for SMEs: Limited access to resources, coupled with a limited understanding of green financial instruments, makes it difficult for many small and medium-sized enterprises (SMEs) to effectively translate sustainability strategies into productivity improvements. 3. Entrenchment of Resource Dependence: Many economies still rely excessively on traditional resource extraction, which presents an inherent structural contradiction with the goals of long-term decarbonization and green transformation, leading to significant resistance from the resource sector on the path to sustainability.

The Perspective of Governance Theory: From Shareholder Value to Stakeholder Balance### Governance Theory Perspective: From Shareholder Value to Stakeholder Balance

From the foundation of management theory, the realization of a firm's sustainable performance is essentially the response of the corporate governance structure to social responsibility. Agency Theory emphasizes the direct impact of top management's decisions on CSP, while Stakeholder Theory requires the firm to consider the needs of all stakeholders. Successful sustainability strategies must find the optimal solution in the complex game between maximizing shareholder returns and balancing the interests of all society. In a global macro environment characterized by resource scarcity and increasing uncertainty, achieving this balance tests the strategic resilience of the enterprise under institutional constraints.

Policy Implications: Constructing Regionally Differentiated Sustainable Development Paths

For global policymakers, the research results clearly indicate that a universal "one-size-fits-all" policy is ineffective. The focus of policy tools must be customized regionally according to different stages of economic development. For developed economies, the focus should be on deepening innovation in green finance and refining governance; for developing countries, more targeted measures must be taken, including simplifying regulatory processes, building capacity for small and medium-sized enterprises, and providing accessible green financing channels. Only by effectively bridging the gap between institutional implementation and corporate practice can regional economic transformation ensure that it is not merely a substitute for economic growth, but a long-term, inclusive, and sustainable prosperity.