This study aims to examine how managers of listed Tunisian companies appropriate global Environmental, Social and Governance (ESG) reporting standards within their specific institutional and organizational contexts. It investigates how ESG guidelines are interpreted, negotiated and either integrated or symbolically adopted in practice. By focusing on processes of meaning-making and internal adaptation, the research explains variation in ESG implementation among firms in emerging markets, where formal institutional pressures coexist with cultural misalignments and operational constraints.
The study adopts a qualitative research design based on semi-structured interviews with senior managers from listed companies in Tunisia. It uses a hybrid analytical framework combining the Burke–Litwin Model of Organizational Performance and Change and appropriation theory to trace how global ESG norms are received, reframed and reconfigured – or resisted – within organizations. Thematic analysis was used to identify phases and patterns in ESG appropriation across firms.
The results reveal divergent ESG trajectories, ranging from symbolic compliance to deeper organizational integration. Many companies engage in ESG reporting primarily to meet external expectations yet lack substantive internalization. Cultural dissonance, leadership ambivalence and limited organizational capabilities hinder meaningful ESG adoption. A three-phase model – Reception, Reframing and Reconfiguration – is proposed to capture the appropriation process and explain varying organizational responses.
The study is context-specific, focusing on listed Tunisian companies, which may limit generalizability. However, the proposed appropriation model provides a transferable analytical framework that can be applied to other under-institutionalized environments. Future research could refine and validate the model through longitudinal or cross-country comparative studies.
The findings highlight the need for ESG policies in emerging markets to be adaptable rather than purely prescriptive. Policymakers and regulators should promote co-designed, participatory frameworks that enable local firms to engage meaningfully with global standards, taking into account constraints such as leadership dynamics, capacity gaps and cultural alignment.
Better alignment between global ESG frameworks and local organizational realities can enhance the legitimacy and effectiveness of ESG reporting. Bottom-up engagement and context-sensitive adaptation can foster more authentic sustainability practices, supporting broader social and environmental development goals in emerging economies.
This study contributes a novel three-phase appropriation model that explains how ESG standards are adapted – or resisted – by organizations in emerging market contexts. By combining insights from organizational change and appropriation theory, it illuminates the informal, negotiated processes that shape ESG integration and advances debates on ESG localization and institutional translation in Global South settings.
