Original title: Corporate Economic, Environmental, and Social Sustainability Performance Transformation through ESG Disclosure
The study looks at Asian firms from 2005 to 2017. It finds that firms sharing more information about environmental, social and governance practices also show stronger economic, environmental and social performance. Environmental and social performance are each positively linked to economic sustainability. The results suggest that sharing this information may help companies create value for both their business and society.
Imagine a shop that keeps track of how much it earns, how much waste it makes, and how it treats its workers. It is hard to judge the shop by sales alone when its choices also affect people and the surroundings. In this paper, the shop’s reports stand for ESG disclosure, and its results across business, environmental and social outcomes stand for sustainability performance.
The results suggest that companies’ environmental and social performance can go hand in hand with economic performance. That matters to workers, communities, investors and other stakeholders who want to know whether a company’s business success is linked to how it affects people and the environment.
The abstract reports relationships in an empirical analysis of Asian firms from 2005 to 2017. It does not establish that disclosure causes better performance, explain whether the findings apply beyond those firms and years, or specify how disclosure was measured.
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Corporate Economic, Environmental, and Social Sustainability Performance Transformation through ESG Disclosure — Maha Faisal Alsayegh, Rashidah Abdul Rahman, Saeid Homayoun — Sustainability — doi:10.3390/su12093910
Abstract licence: CC BY
Explanation generated by Synthesis from the abstract — it is not the original paper.