A Framework for Supplier Management Based on Environmental, Social, and Governance Criteria for Small and Medium‐Sized Enterprises

ABSTRACT

Corporate sustainability, grounded in environmental, social, and governance (ESG) dimensions, has become a strategic imperative for firms seeking competitiveness and resilience. In supply chain management, supplier selection is a key mechanism for translating ESG principles into practice. However, small and medium‐sized enterprises (SMEs), particularly in emerging economies, face resource constraints that hinder the adoption of complex ESG frameworks. Thus, this study proposes an ESG‐based supplier management framework tailored to SMEs in emerging economies. A systematic literature review and an expert survey were used to identify and assess ESG criteria for supplier management. The Fuzzy Delphi Method and Multiattribute Utility Theory were applied to refine and prioritize criteria based on relevance and applicability. Results highlight the central role of social criteria, with governance acting as an enabling pillar and environmental practices playing a complementary role. The framework provides a structured and decision‐support tool for ESG integration in SME supply chains.