Abstract

Small and medium-sized enterprises face increasing pressure to incorporate environmental, social, and governance considerations into their supply chain operations, yet they often lack the resources and frameworks available to larger corporations. This research develops a conceptual framework specifically designed for SMEs to integrate ESG metrics into supply chain decision-making processes. The framework addresses the unique constraints of SMEs, including limited financial resources, smaller organizational structures, and reduced bargaining power with suppliers. Through a comprehensive review of existing literature on sustainable supply chain management, ESG integration, and SME-specific challenges, this study identifies critical gaps in current approaches and proposes a scalable, resource-efficient framework. The conceptual model incorporates three core dimensions: materiality assessment tailored to SME contexts, stakeholder engagement mechanisms suitable for smaller organizational scales, and decision-making tools that balance sustainability objectives with operational and financial constraints. The framework emphasizes practical implementation strategies, including phased integration approaches, collaborative industry initiatives, and technology-enabled solutions that reduce the burden of data collection and analysis. By providing a structured yet flexible approach to ESG integration, this framework enables SMEs to enhance supply chain sustainability, meet evolving stakeholder expectations, and build competitive advantage through responsible business practices. The research contributes to both academic understanding and practical application by bridging the gap between comprehensive ESG frameworks designed for large enterprises and the operational realities of small and medium-sized businesses.