Literature review analyzes how environmental, social, and governance factors influence corporate performance, suggesting significant implications for businesses.
Key Points
Strong environmental initiatives, like reducing carbon emissions, improve corporate financial performance over time.
Social performance, including decent working conditions, increases customer loyalty and enhances business competitiveness.
Governance structures influence the effectiveness of ESG strategies in corporate decision-making processes.
Overall, ESG factors significantly impact business sustainability, yet challenges in assessment remain, highlighting the need for further research.