Integration of ESG practices and strategy: A study of Brazilian credit unions

Abstract Purpose: This study aims to analyze the integration of environmental, social, and governance (ESG) practices into the strategies of credit unions (CUs). Originality/value: The originality of this research lies in understanding the integration of ESG practices into strategy in Brazilian CUs. Developing a sustainability strategy within CUs takes into account governance impacts and meets the strategic demands of stakeholders. Design/methodology/approach: A qualitative research approach was adopted to examine the integration of ESG practices into strategy. The research method used was grounded theory. Nineteen managers from singular, central, and confederation CUs identified as belonging to the five CU systems in Brazil were interviewed. The interviews were transcribed, and content analysis was conducted to understand how Brazilian CUs are incorporating ESG practices into their strategic actions. Findings: The study identified the internal and external conditions, constitution, and effects of integrating ESG practices into the strategies of Brazilian CUs. Eight conditioning factors, 11 constitutive factors, and nine identified effects were found. This analysis enabled the exploration of the actions/interactions that constitute the integration of ESG practices into strategy. The emerging effects resulting from these actions and interactions and the impacted factors and their consequences were also listed. Contribution/implications: By presenting the conditioning factors, constitutive elements, and emerging effects of ESG practices integration into strategy within the context of Brazilian CUs, this research enriches academic knowledge on the subject. It also provides valuable insights for stakeholders (monetary authorities, CU managers, members, etc.) and offers information that can help CUs enhance their strategic action and implementation processes regarding ESG practices.