Sustainable business practices in Bangladesh: aligning corporate and consumer perspectives

Bangladesh has experienced remarkable economic growth, particularly in its ready-made garment (RMG) industry, which has significantly contributed to the country’s development (Islam and Halim, 2022). However, this progress has been accompanied by substantial environmental and social challenges. In response, there is a growing emphasis on sustainable business practices that integrate Environmental, Social and Governance (ESG) considerations into core operations. This shift aligns with global trends advocating responsible business conduct and recognizing the intricate link between economic prosperity and environmental sustainability (Chopra et al., 2024).

While numerous studies examine ESG frameworks and their implementation across different contexts, limited research specifically addresses how businesses in Bangladesh can adapt and effectively utilize these frameworks within their unique socio-economic environment (Ullah, 2020). In addition, the role of sustainable business practices in shaping customer loyalty and brand perception in Bangladesh remains largely unexplored. Despite the increasing discourse on ESG compliance, the country lacks empirical studies assessing how sustainability-driven business models influence corporate performance and consumer behavior.

This research seeks to bridge these gaps by investigating how Bangladeshi businesses measure and enhance their ESG performance, the extent to which sustainability influences customer behavior and the feasibility of business models that balance sustainability with profitability in the local market. Unlike existing studies that primarily discuss ESG adoption in broad terms, this study contributes new insights by examining the practical challenges and strategic benefits specific to Bangladesh. It extends the conversation beyond compliance, highlighting sustainability as a competitive advantage and a driver of long-term business success (Uddin et al., 2023).

The findings from this study will offer valuable insights to Bangladeshi businesses navigating the evolving sustainability landscape. The research will explore relevant ESG metrics and frameworks, analyze consumer preferences for sustainable products and practices and showcase successful business models that integrate sustainability for long-term growth. By doing so, it will provide a nuanced understanding of how sustainability can be leveraged as a strategic tool for enhancing brand value, fostering customer loyalty and ensuring business resilience in an increasingly sustainability-conscious market (Alam and Noor, 2020).

This paper unfolds systematically to ensure a comprehensive analysis. Section 2 presents a detailed literature review, identifying existing gaps and establishing the foundation for this study’s contributions. Section 3 develops a theoretical framework that clarifies the relationships between key variables. Section 4 outlines the research methodology, including data sources, collection procedures and analytical techniques. Section 5 presents the empirical findings and their interpretation in relation to the research questions and theoretical framework. Section 6 discusses the broader implications of the findings and suggests directions for future research. Finally, Section 7 concludes by summarizing the key takeaways and acknowledging the study’s limitations. Through this structured approach, the research aims to offer meaningful contributions to both academic literature and practical business applications in Bangladesh.

Sustainable business practices integrate environmental, social and economic considerations into core business strategies to ensure long-term viability while minimizing negative impacts. However, the effectiveness of these practices is often debated, as businesses struggle to balance profit maximization with sustainability goals (Khan et al., 2023). While frameworks such as the Triple Bottom Line (TBL) and Corporate Social Responsibility have been widely adopted, their practical implementation varies significantly across industries and regions (Nogueira et al., 2025; Nasta et al., 2024). TBL expands traditional financial reporting to include social and environmental performance, yet critics argue that many organizations engage in superficial compliance rather than meaningful integration of sustainability (Lashitew, 2021).

Another key challenge in sustainability reporting is the lack of standardized measurement criteria. Existing sustainability metrics, such as carbon footprint calculations, often suffer from inconsistencies and transparency issues, raising concerns about “greenwashing” (Lashitew, 2021). Efforts by organizations such as the Global Reporting Initiative (GRI) and the International Integrated Reporting Council have sought to address these issues, yet full-scale adoption remains uneven (Setia et al., 2022). Therefore, while sustainability frameworks offer structured approaches, their effectiveness hinges on stricter regulatory oversight and a genuine commitment from businesses.

Multiple global and national factors drive the adoption of sustainable business practices, yet their influence varies across sectors and economic conditions. Environmental concerns such as climate change and resource depletion compel businesses to minimize their ecological impact (Raza and Woxenius, 2023). Consumer preferences are also shifting toward sustainable products, placing reputational and financial pressure on businesses to demonstrate ethical practices (Reddy et al., 2023). However, studies indicate that while consumer demand influences corporate behavior, actual purchasing decisions often remain price-sensitive, limiting the impact of sustainability as a primary competitive advantage.

Investor interest in ESG factors has grown significantly, with research suggesting that strong ESG performance correlates with improved financial outcomes (Young-Ferris and Roberts, 2023). However, skeptics argue that the financial benefits of ESG integration are not always immediate, leading some firms to deprioritize sustainability in favor of short-term profitability (Sheehan et al., 2023). Governments worldwide have introduced policies such as carbon pricing, pollution control measures and conservation incentives, yet enforcement and compliance remain inconsistent across regions (Rhodes et al., 2021). This divergence highlights a key challenge, whereas regulatory frameworks provide incentives for sustainability, their effectiveness depends on rigorous enforcement and alignment with economic priorities.

The relationship between ESG practices and financial performance remains a contested area of research. Studies suggest that robust ESG practices can enhance brand reputation, foster consumer loyalty and improve access to capital (Rau and Yu, 2024). Moreover, businesses with proactive ESG strategies can mitigate risks such as regulatory penalties and labor disputes, leading to long-term cost savings and resilience (Alsayegh et al., 2020). Investing in employee well-being and diversity can further enhance productivity and reduce turnover, indirectly benefiting financial performance (Sypniewska et al., 2023).

However, ESG implementation is not without its financial trade-offs. Transitioning to sustainable practices, such as cleaner technologies and ethical supply chains, often incurs substantial short-term costs (Sheehan et al., 2023). Moreover, quantifying the direct financial benefits of ESG investments remains complex, as traditional financial metrics may not capture long-term sustainability gains (Popescu et al., 2021). In addition, the prevalence of “greenwashing”—where companies exaggerate their sustainability claims—can undermine investor trust and pose reputational risks (Breuer et al., 2024).

Industry-specific variations also influence the financial impact of ESG adoption. Resource-intensive industries may face stricter environmental regulations, whereas service-oriented businesses may benefit more from social responsibility initiatives (Ioannidis et al., 2021). Moreover, companies prioritizing short-term financial goals may struggle to justify ESG investments, whereas those adopting a long-term perspective recognize the potential for sustained value creation (Edmans, 2023).

In Bangladesh, the intersection of rapid economic growth and environmental sustainability presents unique challenges and opportunities. The RMG sector, a key pillar of the economy, has faced scrutiny over issues such as excessive energy consumption, water pollution and worker safety concerns (Debnath et al., 2024). Although sustainable practices offer potential solutions, their adoption remains limited due to financial constraints and a lack of awareness (Khan et al., 2023).

Despite these challenges, emerging success stories suggest that sustainability can drive competitiveness. For instance, green building initiatives in the RMG sector have demonstrated both environmental and economic benefits, proving that sustainability does not necessarily come at the expense of profitability (Sarkar et al., 2020). The Bangladeshi government has introduced initiatives like the Bangladesh Green Building Code and Sustainable RMG programs, aimed at fostering sustainable business practices (Uddin et al., 2023). However, the success of these initiatives depends on effective policy enforcement, industry participation and access to financial and technical support.

Industry associations such as the Bangladesh Garment Manufacturers and Exporters Association have begun advocating for sustainability as a means of enhancing global competitiveness (Salvetti and Nijhof, 2020). Yet, for sustainable business practices to take root, a cultural shift toward long-term value creation over short-term gains is necessary. Without a concerted effort from policymakers, businesses and civil society, sustainability in Bangladesh risks being perceived as an external obligation rather than a strategic imperative.

This research explores the dynamic interplay between consumer demands, business initiatives and a sustainable environment in the context of Bangladesh. By integrating key theoretical perspectives, this framework as presented in Figure 1 provides a structured approach to understanding how businesses navigate the evolving landscape of ESG and sustainability.

The increasing environmental consciousness among Bangladeshi consumers is driving a demand for sustainable products and services. This awareness is influenced by factors such as improved access to information, media exposure and growing concerns for environmental well-being. The Theory of Planned Behavior (TPB) by Hagger et al. (2022) underpins this aspect of the framework. TPB suggests that environmental awareness, positive attitudes toward sustainability and perceived behavioral control significantly influence consumer purchase decisions regarding sustainable products. This study extends the application of TPB by exploring how these consumer preferences translate into broader business sustainability strategies.

Businesses are actively responding to evolving consumer preferences by integrating ESG practices into their operations (Clementino and Perkins, 2021). These practices include eco-friendly production processes, ethical labor practices and transparent corporate governance. The stakeholder theory further reinforces this perspective, positing that businesses have a responsibility to address the interests of all stakeholders, including society and the environment, rather than focusing solely on shareholders (Sreenivasan and Suresh, 2024). This study builds upon stakeholder theory by examining how Bangladeshi businesses balance these diverse interests while maintaining profitability and regulatory compliance. In addition, legitimacy theory is relevant in this context, as businesses seek to align their ESG strategies with societal expectations to enhance credibility and long-term sustainability.

The adoption of circular economy principles, such as reducing waste and promoting resource reuse, presents a significant opportunity to contribute to a more sustainable business environment in Bangladesh (Azizuddin et al., 2021). Institutional theory offers further insight into this shift, emphasizing the role of regulatory frameworks, industry norms and external pressures in shaping business practices. The United Nations sustainable development goals (SDGs) provide a comprehensive structure for businesses to align their sustainability efforts with broader environmental and social goals. By incorporating institutional theory, this study highlights how businesses in Bangladesh respond to regulatory and normative pressures in adopting ESG practices.

The interaction among these domains creates a feedback loop that drives sustainable business practices. Consumer demand for sustainable products incentivizes businesses to adopt ESG practices, leading companies to integrate environmentally and socially responsible strategies into their operations. As businesses implement sustainability initiatives, they not only reduce environmental harm but also enhance brand reputation and foster consumer loyalty. This, in turn, encourages further investment in ESG practices, reinforcing the cycle. Moreover, these sustainable business practices contribute significantly to achieving the SDGs, fostering long-term environmental and social benefits (Islam et al., 2021). This continuous interaction between consumer expectations, business adaptations and regulatory influences underscores the evolving landscape of sustainability in Bangladesh.

Integrating TPB, stakeholder theory, legitimacy theory and institutional theory, this research strengthens the theoretical foundation for understanding ESG and sustainability in Bangladesh. It builds upon existing frameworks while challenging conventional perspectives by examining how regulatory, social and consumer-driven factors collectively influence business sustainability efforts.

To gain a comprehensive understanding of ESG practices in Bangladeshi businesses, this study employed two separate surveys targeting distinct stakeholder groups:

1. Business representatives: This survey targeted senior managers, managing directors and owners of various organizations. Their direct involvement in ESG implementation and decision-making processes makes them crucial informants for this research.

2. Consumers: Consumer awareness and preferences regarding ESG practices are vital for businesses to understand their market positioning and future strategies.

The surveys were conducted between February 25th and May 9th, 2024. A systematic stratified random sampling approach was used to ensure representation from diverse industries and consumer demographics. The selection process involved the following steps:

1. Business representatives: Organizations were first categorized based on their industry type, such as manufacturing, service, retail and others. Within each category, businesses were randomly selected to participate. The respondents (senior managers, directors and owners) were approached through professional networks, industry associations and business directories to minimize selection bias and enhance representation.

2. Consumers: The consumer sample was drawn using stratified random sampling to ensure diversity in terms of age, gender, income level and geographic location (urban and rural areas). This approach ensures that the findings reflect a broad spectrum of consumer perspectives, mitigating biases associated with convenience sampling.

To further minimize potential biases, participation was voluntary, and respondents were not offered incentives that could unduly influence their responses. This ensured genuine and unbiased participation from both business representatives and consumers.

To maximize participation, the study utilized both electronic and manual survey formats. Electronic surveys were distributed through email, messaging apps and online platforms to reach respondents efficiently. Manual surveys were conducted in person, particularly in cases where internet access was limited, ensuring inclusivity.

A total of 450 survey forms were distributed to business representatives, of which 225 were collected, resulting in a 50% response rate. Among consumers, 800 survey forms were distributed, with 639 valid responses collected, achieving an 80% response rate.

The surveys were designed to maintain respondent anonymity, particularly for business representatives providing sensitive ESG-related insights. Anonymity encouraged honest and open responses, leading to more reliable data.

Data on ESG practices were collected using a Likert scale, allowing respondents to indicate their level of agreement with various ESG-related statements (ranging from “strongly disagree” to “strongly agree”). The use of Likert scales ensured consistent data collection and facilitated statistical analysis using regression techniques to examine relationships between consumer preferences and business ESG adoption.

The robust sampling strategy and data collection techniques ensure that the sample is representative of the broader population. By incorporating diverse industry perspectives and consumer demographics, the study provides reliable and generalizable insights into the current state of ESG practices in Bangladesh.

This study employed various statistical models to analyze the collected data and extract meaningful insights, ensuring rigorous validity and reliability checks.

Regression analysis was utilized to explore the cause-and-effect relationships between variables, specifically how the implementation of ESG practices influences business performance. The dependent variable, financial performance, was measured against ESG practices as independent variables.

Factor analysis was applied to identify underlying constructs within the ESG framework, simplifying the complex data set into key components. Principal Component Analysis with varimax rotation was used to extract factors, ensuring that each ESG dimension—Environmental, Social and Governance—was appropriately represented by its key indicators. Kaiser–Meyer–Olkin (KMO) and Bartlett’s Test of Sphericity were conducted to assess sample adequacy and confirm the suitability of the data set for factor analysis. Reliability of the extracted factors was verified using Cronbach’s alpha, ensuring internal consistency of the ESG measurement scales.

Descriptive statistics were utilized to summarize the demographic characteristics of the respondents and their perceptions of ESG practices. Frequency distributions, mean scores and standard deviations were calculated to provide a comprehensive overview of the data. This analysis offered insights into various aspects, including business representatives’ sustainability awareness, ESG adoption levels and governance practices. In addition, consumer perspectives were examined, focusing on sustainability preferences, brand perception and their willingness to pay for sustainable products. By employing descriptive analysis, the study effectively captured key trends and patterns in ESG-related attitudes and behaviors.

To ensure the robustness of the measurement instruments used in this study, several reliability and validity checks have been performed.

For regression analysis, key assumptions—including linearity, multicollinearity, homoscedasticity and the normality of residuals—have been tested prior to conducting the analysis. The Variance Inflation Factor has been employed to detect multicollinearity, ensuring that predictor variables are not excessively correlated.

For factor analysis, internal consistency has been assessed using Cronbach’s alpha for the ESG-related survey. A high Cronbach’s alpha value indicates strong interrelatedness among survey items measuring the same construct, thereby ensuring the reliability of responses. To establish content validity, the survey instrument has undergone a rigorous review by industry experts and academic professionals. Their evaluations have helped confirm that the questionnaire effectively captures the intended ESG constructs. This review process has ensured comprehensive coverage of all relevant ESG dimensions without omitting any critical aspects.

Construct validity has been established through factor analysis, which examines whether the observed variables accurately represent the underlying ESG constructs. This process has involved assessing factor loadings and statistical measures to determine whether the data aligns with the theoretical framework of ESG measurement. By conducting these analyses, this study has ensured that the measurement instruments are both reliable and valid for capturing ESG-related insights.

Table 1 (Panel A and B) shows valuable insights into the potential relationship between company size and type with their approach to ESG practices. The near-equal distribution across company sizes (micro, small, medium and large) provides an opportunity to investigate whether attitudes toward ESG vary significantly based on business scale.

The significant representation of the manufacturing sector (63.10%) is important as this sector has a larger environmental footprint. Analyzing these companies in detail will shed light on how they address environmental concerns and integrate them into their operations. While services, retail and other sectors have a smaller representation, they should not be overlooked. Understanding how these diverse sectors approach ESG provides a more comprehensive picture.

The KMO measure of 0.825 and a highly significant Bartlett’s Test (Sig. 0.000) in Table 2 indicate that the Likert scale data of this study is suitable for factor analysis. This means the sample size is adequate, and the relationships between the variables suggest underlying factors that factor analysis can effectively identify (Christensen and Golino, 2021).

Table 3 shows the factor analysis, using principal axis factoring, successfully extracted factors that explain a substantial portion of the variance in data. The first factor is particularly strong, capturing a 65.987% of the variance, with the second factor adding another 10.836%. This means the analysis has identified clear underlying structures in the Likert scale data.

The factor loadings in Table 4 are generally high (above 0.647), indicating a strong positive attitude of businesses in Bangladesh toward ESG practices.

Businesses in Bangladesh place a clear focus on social responsibility, with high factor loadings for employee training (0.871), community engagement (0.750) and diversity and inclusion (0.750). This suggests that Bangladeshi businesses recognize the importance of investing in their workforce and giving back to the communities they operate in. Kabeer et al. (2020) noticed that A garment factory collapse in Bangladesh led to new international agreements aiming to improve worker safety and rights in the industry. Bangladesh’s garment disaster spurred international action for worker safety, reflecting a shift toward responsible businesses investing in their workforce and communities.

Environmental sustainability is also important to Bangladeshi businesses, as shown by high loadings for considering environmental impact (0.878) and actively seeking ways to reduce their environmental footprint (0.647). This indicates a growing awareness of the environmental impact of business operations and a commitment to mitigating it (Garg, 2021).

Governance practices, including board involvement in ESG oversight (0.887), transparency and accountability (0.838) and having a corporate governance code that addresses ESG considerations (0.548), also receive significant focus from Bangladeshi businesses. This suggests that businesses are taking steps to ensure that ESG considerations are integrated into their decision-making processes and that they are held accountable for their ESG performance. Kabeer et al. (2020) analyzed India’s e-waste challenges and proposes solutions like strong leadership, policy enforcement (EPR) and industry collaboration for effective e-waste management.

The results offer positive insights into sustainable business practices in Bangladesh, aligning well with the goals of SDG 12.

Table 5 reveals high factor loadings (above 0.75) for social and environmental aspects. This indicates that businesses prioritize aspects like employee development, community engagement and reducing environmental impact. This directly contributes to SDG 12’s goals of sustainable production and consumption.

High loadings for factors like board involvement in ESG practices and a corporate governance code addressing ESG considerations (0.887 and 0.548) show a strategic approach to sustainability. This reflects a move toward responsible business practices, which is essential for SDG 12.

A high loading (0.838) for transparency and accountability signifies businesses’ commitment to responsible actions. This aligns with SDG 12’s emphasis on sustainable consumption patterns, where consumers can make informed choices.

These results indicate a positive picture of Bangladeshi businesses embracing sustainable practices that contribute to achieving SDG 12.

A closer look at the Table 5 reveals a compelling story for Bangladeshi businesses. The table presented shows a positive and statistically significant relationship between all three aspects of ESG and a company’s financial performance. This means that Bangladeshi companies that prioritize these factors are likely to see a financial benefit.

Environmental practices have the strongest positive impact on financial performance. Companies that have a formal environmental policy, actively reduce waste and energy consumption and integrate sustainability into their business decisions tend to perform better financially. This suggests that eco-conscious practices are not just good for the environment, but also for the bottom line.

Social responsibility also plays a role, with companies that invest in employee well-being, training and diversity showing a positive impact on financial performance (Okafor, et al., 2021). While the effect is slightly weaker than environmental factors, it still highlights the value of a strong social component.

Finally, good governance practices, like having a clear corporate code that addresses ESG concerns and a board actively involved in overseeing these issues, are linked to better financial performance. This indicates that transparency, accountability and a focus on ESG can create a strong financial foundation for Bangladeshi businesses.

These findings strongly support Bangladesh’s focus on achieving SDG 12: Responsible Consumption and Production. By prioritizing sustainable practices, businesses are not just contributing to a healthier planet and a more just society, they are also strengthening their own financial standing. The issues listed under each ESG factor serve as actionable steps for Bangladeshi companies to improve their ESG performance and potentially see the financial rewards highlighted in the table. Implementing these practices can be a win-win situation for businesses and Bangladesh’s pursuit of a sustainable future.

Table 6 shows a diverse range of participants in the survey to understand consumer preferences for sustainable business practices in Bangladesh, with the largest share (80.4%) being young adults (18–44). Including younger voices is crucial. They offer a future-focused perspective on sustainability, are tech-savvy for insights on technology’s role and bring innovative ideas for businesses to adapt and develop long-term sustainable practices.

Table 7 offers some insights through familiarity with the term “sustainability.” A significant 73.7% of participants being familiar or very familiar suggests a growing awareness of sustainability among Bangladeshi consumers. This familiarity can translate to benefits like heightened interest in sustainable businesses, preference for products aligned with those practices and even a potential willingness to pay more.

Table 8 reveals positive consumer sentiment toward sustainable businesses. Over half (56.6%) are willing to pay a premium for sustainable products, indicating a strong shift in priorities. While price remains a factor for some (37.7%), their willingness to consider a premium highlights a growing value placed on sustainability. This trend encourages businesses to carefully consider ESG applications. Consumers are rewarding sustainable practices, and strategically implementing ESG principles can attract this growing market segment, while fulfilling the company’s environmental and social responsibilities.

Table 9 reveals a significant shift in purchasing behavior, with a combined 77.2% of respondents considering a brand’s sustainability practices “sometimes,” “often” or “almost always.” This is no longer a niche concern; sustainability is becoming a mainstream factor influencing consumer decisions in Bangladesh.

This presents a unique opportunity for businesses. They can leverage sustainability as a key differentiator in their branding strategy. By effectively communicating their commitment to environmentally and socially responsible practices, they can attract this growing segment of conscious consumers. However, transparency is key. Consumers are looking for brands that clearly explain their sustainability efforts and the positive impact they have on the environment and society. This builds trust and strengthens the brand image.

The price factor remains a challenge in Bangladesh, which is a price-sensitive market. While consumers might be willing to pay a premium for sustainable products (as seen in Table 8), businesses need to find a balance. One strategy is value-based pricing. Highlighting the value proposition of sustainable products, such as higher quality, ethical sourcing, or environmental benefits, can justify a slight price increase.

Here in Bangladesh, cost optimization through sustainable practices becomes even more important. Businesses can explore resource efficiency or waste reduction to offer sustainable products at competitive prices. In addition, tailoring communication to this market is crucial. Focusing on how sustainable practices benefit the local community or environment, alongside the broader environmental impact, can resonate more strongly with Bangladeshi consumers.

Examining sustainability priorities across different age groups in Bangladesh reveals some interesting insights from Table 10.

Environmental practices seem to be a consistent concern, with a majority across all age groups (41.2% to 54.2%) considering them most important. This suggests a general awareness and concern for environmental issues among Bangladeshi consumers.

However, there are some interesting shifts in focus when looking at social responsibility. Younger demographics (18–24 at 47.4%, 25–34 at 34.3%) seem to prioritize environmental issues slightly more compared to older groups (45–54 at 47.1%, 35–44 at 38.7%). This might be because younger generations grew up in a more socially conscious environment, leading them to view such practices as standard.

The importance of ethical sourcing also appears to be age-dependent. The percentage considering it most important rises from 53.3% (18–24) to 66.2% (45–54). This suggests that as consumers gain experience and potentially more disposable income, ethical sourcing becomes a more significant factor in their purchasing decisions.

Interestingly, transparency on sustainability efforts receives consistent scores across age groups (ranging from 43.9% to 48.5%). While valued, it does not seem to be the top priority for any age group.

Finally, the percentage of respondents who consider none of these aspects important remains relatively low and consistent across all age groups (ranging from 44.0% to 48.0%). This suggests a generally positive outlook on sustainability among Bangladeshi consumers.

Consumers in Bangladesh are increasingly interested in a brand’s sustainability efforts. Figure 2 reveals some fascinating insights into how they get informed. Social media, with 24.28%, emerges as the most dominant source, followed closely by company websites (20.05%) and word-of-mouth recommendations (19.28%). These findings highlight the critical role online communication plays in reaching Bangladeshi consumers.

This trend aligns perfectly with Bangladesh’s rapid digital transformation. As internet access continues to expand, social media’s influence is likely to further solidify. Brands can leverage platforms like Facebook and Instagram to showcase their sustainability initiatives through engaging content, influencer partnerships and fostering online communities around their values.

Company websites also hold significant weight. Consumers value information directly from the brand. A well-designed website featuring a dedicated sustainability section that clearly outlines practices and achievements is crucial. This builds trust and allows consumers to make appropriate choices.

Interestingly, word-of-mouth recommendations, though not the leader, hold considerable power. Social media can actually amplify this effect. Positive online reviews and discussions about a brand’s sustainability efforts can spread quickly, reaching a wider audience and influencing purchasing decisions.

While certifications (11.20%) are not the top source yet, they are important to consider, especially as Bangladesh transitions into a smart nation. Third-party verification through sustainability certifications lends credibility to a brand’s claims, fostering trust and confidence among consumers.

It is observed from the Figure 3 that Bangladeshi consumers are associating sustainability with brands like Aarong for their ethical production and Bata for responsible sourcing. Unilever’s global initiatives and Grameenphone’s focus on renewable energy resonate with eco-conscious consumers. Pran’s local ingredients likely position them as sustainable as well. A growing “Other” category suggests a rise in niche sustainable brands. While this data indicates a growing awareness of sustainability among Bangladeshi consumers, brands that prioritize sustainable practices and effectively communicate their efforts are likely to be rewarded with a loyal following.

Figure 4 reveals that Bangladeshi consumers are increasingly interested in sustainability, but their understanding and priorities are still evolving. Previously, social media dominated information sources about brands. Now, however, a shift toward valuing specific sustainable practices is evident. Energy efficiency (25.18%) and eco-friendly packaging (15.25%) are the top reasons for associating with a brand, suggesting consumers are moving beyond brand image and actively seeking products with sustainable attributes.

It is noticed that there remains a significant knowledge gap. Nearly a quarter (23.75%) have not heard about any sustainability efforts from their chosen brands. This highlights a critical need for brands to improve communication regarding their environmental and social responsibility initiatives.

The high percentage (23.75%) in the “Other” category adds another layer. Some consumers might consider a broader range of sustainability practices beyond those listed. This could include social responsibility initiatives, responsible sourcing of materials, or ethical production methods as mentioned earlier (Kanter, et al., 2020).

Interestingly, eco-friendly packaging, despite not being the top factor, is noticed and associated with sustainability (15.25%). This aligns with the previous table, where social media’s influence played a role. Consumers are likely picking up on these visual cues and recognizing them as sustainable practices. Brands have an opportunity to capitalize on this by using packaging that reflects their commitment to sustainability and clearly communicating those efforts to their customers. A comparative overview of ESG adoption and consumer perceptions across Bangladesh, India and Sri Lanka, highlighting key similarities and differences has been drawn in Table 11.

The study highlights a strong potential for positive attitudes toward ESG principles from both business and consumer perspectives in Bangladesh. To translate this potential into actionable progress, a multi-stakeholder approach is crucial. The following recommendations address specific barriers and provide concrete steps for businesses, policymakers, supply chain actors and consumers.

To overcome barriers to ESG implementation, businesses in Bangladesh must adopt strategic approaches that align sustainability with profitability. Companies should embed ESG considerations into their core business models by setting measurable sustainability goals and incorporating them into decision-making processes. They can seek green financing options, such as sustainability-linked loans, and explore government-provided incentives for ESG adoption. Establishing clear ESG reporting frameworks based on global best practices, such as the GRI or the Sustainability Accounting Standards Board, can build investor confidence and consumer trust. Businesses should also explore resource efficiency, renewable energy adoption and waste minimization strategies to balance cost savings with environmental responsibility. In addition, investing in employee training on ESG practices will ensure better implementation and long-term sustainability.

Regulatory authorities and governments have a significant role to play in fostering a sustainable business environment in Bangladesh. Here is how they can make a positive impact.

First, establishing clear frameworks and guidelines for ESG reporting and disclosure is crucial. Consistent and transparent standards benefit both businesses and investors. These frameworks should be developed collaboratively with relevant stakeholders to ensure they are practical, effective and reflect the specific needs of the Bangladeshi market.

Second, government initiatives can act as powerful motivators for businesses to embrace sustainable practices. Offering tax breaks or subsidies for companies that adopt renewable energy sources or implement eco-friendly manufacturing processes can significantly encourage investment in these areas.

Third, investing in infrastructure that supports sustainability benefits both businesses and the environment. This could involve prioritizing renewable energy grids, developing efficient waste management systems and promoting sustainable transportation options like improved public transit or electric vehicle charging networks. Such investments create a supportive ecosystem that makes it easier for businesses to operate sustainably.

Finally, government-led awareness campaigns can play a vital role in educating consumers about the importance of sustainability. By highlighting the environmental and social benefits of sustainable products, these campaigns can empower consumers to make informed choices. In addition, encouraging consumers to demand transparency from brands creates pressure on businesses to prioritize sustainability efforts. These combined efforts can create a powerful shift toward a more sustainable future for Bangladesh.

Sustainability is a shared responsibility that extends across the entire supply chain. Businesses should collaborate with suppliers that adhere to environmental and social responsibility standards, ensuring ethical sourcing practices. Optimizing logistics, using sustainable materials and minimizing waste at each stage of production can contribute to a greener supply chain. Establishing ESG performance criteria for suppliers will help maintain responsible sourcing and ethical labor practices. Furthermore, adopting digital tracking tools such as blockchain can enhance supply chain transparency and traceability, fostering accountability throughout the value chain.

Consumers play a pivotal role in driving market demand for sustainable products. To strengthen their influence, they should make informed choices by researching brands, verifying sustainability certifications and supporting companies committed to ESG principles. Engaging with businesses through social media, public forums and consumer rights organizations can pressure companies to improve their ESG performance. Adopting sustainable consumption habits, such as opting for eco-friendly products, reducing waste and supporting circular economy initiatives like recycling programs, will contribute to sustainability. In addition, consumers can advocate for ESG-friendly policies by engaging with policymakers and endorsing sustainable business practices

Based on robust data collected from surveys targeting both businesses and consumers in Bangladesh, this research highlights a significant shift toward sustainable business practices in the country. The findings indicate a positive trend with Bangladeshi businesses increasingly prioritizing ESG initiatives. The surveys included a diverse range of participants, including senior managers, managing directors and consumers from various sectors and demographics, ensuring a representative sample that reflects the broader market sentiment. The research justifies the importance of sustainable practices by demonstrating a growing consumer willingness to pay a premium for sustainable products, emphasizing the potential economic benefits and positive environmental impact of such initiatives. The statistical models employed, such as regression analysis and factor analysis, provided valuable insights into the relationships between ESG practices and business performance, shedding light on the factors influencing sustainable business practices in Bangladesh. The study’s policy recommendations are grounded in the data collected, urging businesses to integrate ESG practices into their core strategies for long-term growth and advocating for consumer awareness and demand for sustainable products. By bridging the gap in understanding sustainable practices in Bangladesh and providing empirical evidence from a well-defined methodology, this research contributes to a more comprehensive understanding of the evolving landscape of sustainable business practices in the country.

While this study provides valuable insights, certain limitations should be acknowledged. The research primarily focuses on Bangladesh, and findings may not be universally applicable to other regions. Limited availability of comprehensive ESG-related data in Bangladesh may affect the accuracy of impact assessments. Different industries face unique ESG implementation barriers that require tailored solutions. Future studies should explore industry-specific ESG adoption strategies, assess long-term economic benefits and evaluate the effectiveness of policy interventions in promoting sustainability. By addressing these limitations and implementing the above recommendations, businesses, policymakers and consumers can collectively advance ESG practices in Bangladesh, fostering long-term economic and environmental sustainability.