1*INTI International University, Nilai, Seremban, Malaysia. Email: i25038783@student.newinti.edu.my (Corresponding Author)
2Lecturer in Marketing, Danford Higher Education, Melbourne, Australia
3Professor (Management), Head - International Program Office, Nodal Officer-NEP 2020, HOD - School of Management, D Y Patil University, Pune, Ambi
Artificial intelligence has become an important technological innovation in the financial sector, enabling institutions to process Sustainability reporting has emerged as a critical component of corporate governance, driven by increasing stakeholder expectations for transparency and accountability. Environmental, Social, and Governance (ESG) frameworks and Sustainable Development Goals (SDGs) have become dominant tools for evaluating corporate sustainability performance. However, concerns persist regarding their ability to capture genuine ethical behavior, as both frameworks often rely on compliance-driven metrics and integrate multiple ethical perspectives. This study adopts a conceptual review approach to examine ESG and SDG frameworks through the lens of virtue ethics, alongside Kantian ethics and utilitarianism. The analysis highlights inherent theoretical inconsistencies arising from the coexistence of duty-based, outcome-based, and character-based ethical paradigms. These inconsistencies contribute to issues such as superficial disclosures, greenwashing, and reporting fatigue, limiting the effectiveness of sustainability reporting in achieving meaningful impact. The study further explores Social Business Enterprises (SBEs) as a virtue-based alternative that embeds ethical values directly into organizational practices. By emphasizing moral character, practical wisdom, and purpose-driven operations, SBEs offer a more coherent and authentic model for sustainability. The findings suggest that future sustainability reporting should transition toward virtue-based, practice-driven frameworks supported by simplified reporting systems, stronger accountability mechanisms, and institutional support. Such an approach can bridge the gap between ethical intent and practical implementation, fostering long-term value creation and sustainable development, economic growth.
Keywords: Sustainability reporting, ESG, SDGs, Virtue ethics, Social Business Enterprises
How to cite this article: Chan XL, Teck TS, Geok LS, Rushidi M, Eu HS, Liau CH, Sonar P. Rethinking Sustainability Reporting: A Virtue Ethics Critique of ESG and SDGs and the Case for Social Business Enterprises. Int J Drug Deliv Technol. 2026;16(7s): 553. DOI: 10.25258/ijddt.16.7s.58
Source of support: Nil.
Conflict of interest: None