CORPORATE GOVERNANCE IN CONFESSIONAL INSTITUTIONS: A FRAMEWORK BASED ON ESG PRINCIPLES

Abstract

This study investigated how governance practices can be adapted and aligned with ESG (environmental, social, and governance) principles in confessional institutions, preserving their religious identity and mission. A qualitative methodology was used with literature review and document analysis to propose a practical and adaptable framework. The framework suggests strategic, operational, and relational dimensions, integrating confessional values and contemporary demands for sustainability and inclusion. The results highlighted challenges such as cultural resistance, limited resources, and regulatory pressures, but also identified significant opportunities, including strengthening institutional reputation, pedagogical innovation, and expanding collaborative networks. The analysis demonstrated that aligning confessional values with ESG principles can promote greater social relevance and positive impact. The study concludes that governance in faith-based institutions, when strategically structured and based on ESG, not only strengthens their mission, but also offers a competitive and sustainable differential. Future research can explore the framework's replicability in different contexts and assess the effectiveness of ESG metrics in the longevity of these organizations.