Integrating Sustainable Business and Corporate Law: A Comparative Analysis of Legal Frameworks for Green Governance in Bangladesh and South Asia

Abstract

This study examines how corporate legal frameworks and business strategies interact to promote sustainable governance in Bangladesh and South Asia, emphasizing the mediating role of ethical governance. Using a mixed-method approach, quantitative data from 180 corporate professionals were analyzed through Structural Equation Modeling (SEM) in SmartPLS, and qualitative insights from ten expert interviews were interpreted using NVivo. The findings reveal that both legal frameworks and business strategies significantly influence green governance, with ethical governance serving as a crucial bridge that transforms compliance into genuine sustainability. The model achieved strong fit indices (SRMR = 0.061, NFI = 0.91) and substantial explanatory power (R² = 0.69 for Green Governance). Qualitative results supported these findings, showing that sustainable governance depends not only on regulation but also on moral leadership and an ethical corporate culture. This research contributes to the understanding of how legal and strategic systems can jointly foster ethical and sustainable business behavior. It offers practical guidance for policymakers, corporate leaders, and researchers aiming to integrate legal accountability, ethical responsibility, and environmental stewardship in corporate governance.