ESG Performance and Its Impact Pathways: A Qualitative Systematic Literature Review of Theoretical and Empirical Mechanisms
DOI:
https://doi.org/10.70142/jbl.v3i1.66Keywords:
ESG Performance, ESG Impact Pathways, Sustainability, ESG implementation, Green Innovation, Systematic Literature ReviewAbstract
This study examines the theoretical and empirical mechanisms through which Environmental, Social, and Governance (ESG) performance influences corporate and sustainability outcomes. Using a qualitative systematic literature review, the study synthesizes relevant theoretical and empirical evidence on ESG performance, its antecedents, mediating mechanisms, moderating conditions, and organizational outcomes. The findings indicate that ESG performance does not generate value through a single direct pathway but operates through interconnected stakeholder, information and disclosure, financial, innovation, risk-management, managerial, governance, and institutional mechanisms. Green innovation, stakeholder trust, corporate reputation, access to finance, reduced information asymmetry, and risk mitigation emerge as important impact pathways. The synthesis also demonstrates that ESG outcomes are context dependent and influenced by managerial characteristics, firm attributes, institutional environments, measurement approaches, and economic conditions. The study contributes a mechanism-oriented framework that explains how ESG performance can create value, strengthen organizational resilience, stimulate innovation, and support sustainable corporate development.
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