ESG PERFORMANCE AND CONTROVERSIES: ANALYSIS OF DETERMINANTS IN EMERGING COUNTRIES
DOI:
https://doi.org/10.22277/rgo.v18i3.8725Keywords:
ESG performance, ESG controversies, Emerging CountriesAbstract
Purpose: To analyze the determinants of Environmental, Social, and Governance (ESG) performance and controversies in companies from emerging countries.
Method/approach: A descriptive, documentary, and quantitative study was conducted employing panel data regression. The sample comprised 23,651 observations from the period between 2016 and 2023, involving companies located in 24 emerging countries with data available in the LSEG® database.
Main findings: The findings show that country-level variables (economic and human development), cultural factors (uncertainty avoidance), and firm-specific characteristics (size, intangibility, debt, and adherence to the Global Compact) are significant factors in explaining both ESG performance and ESG controversies in emerging nations.
Theoretical, practical/social contributions: This research offers theoretical contributions by expanding the understanding of the determinants of ESG from a country and company perspective, in the context of emerging economies. In practical terms, it guides management, governance, and corporate sustainability decisions. Socially, it highlights the relevance of ESG practices for sustainable and inclusive growth, reinforcing the integration between economic performance and social responsibility of companies.
Originality/relevance: The originality lies in exploring the determining factors of ESG performance and controversies from an internal and external perspective, considering the reality of emerging countries that face sustainability pressures and expectations different from those of advanced economies.
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