Compliance or beyond: Seeking an answer for Environmental, Social, and Governance (ESG) practices of listed companies in Vietnam

A number of studies in environmental disclosure have suggested that corporates accountable for environmental responsibility practice have lower cost of capital. However, this relationship has not yet been discovered in Vietnam. The purpose of this study is to examine the relationship between environmental disclosure and the equity cost of 115 non-financial companies listed on Vietnamese stock market from 2014 to 2017 with 460 observations. This study uses the panel data regression model (the fixed effects model (FEM) and the random effects model (REM)) to assess the impact of environmental disclosure on the equity cost of listed companies in Vietnam. Content analysis method according to GRI guidelines is used to measure the level of the environmental responsibility practice and Easton’s model (2004) is used to estimate firms’ ex ante cost of equity. The research results show that the level of environmental information disclosure of listed companies in Vietnam is not high and there is a negative relationship with statistical significance between the environmental disclosure and cost of equity of listed companies in Vietnam. The findings suggest that environmental practice can be profitable and beneficial to Vietnamese listed companies. Therefore, companies in Vietnam need to change their awareness of social and environmental responsibility practices. This study also shows that the suitable model for listed companies in Vietnam is the FEM.

The intensifying geopolitical risk (GPR) across major countries has raised concerns about how firms can navigate the uncertainties that arise from it. This paper is the first effort to provide evidence that companies in Vietnam engage in Environmental, Social, and Governance (ESG) practices to mitigate GPR. Utilizing a unique dataset of ESG performance of publicly listed companies on the Vietnam stock markets from 2018 to 2023, the study demonstrates that increasing levels of GPR, both globally and in eight major economies, lead to heightened ESG activities among firms. Specifically, the result shows that a one-unit increase in GPR is associated with an increase in ESG by 4,895 units. While GPR significantly influences environmental and social initiatives, governance activities show insignificant influence. Moreover, firms categorized as high-risk exhibit a more pronounced increase in ESG efforts in response to GPR compared to their low-risk counterparts, suggesting that these companies strategically use ESG to manage GPR. This study offers crucial insights for firms in Vietnam, highlighting the benefits of adopting ESG practices to safeguard against potential shocks stemming from geopolitical instability.

Purpose The purpose of this paper is to examine (1) the effect of environment, social, and governance practices on employee organizational commitment, and (2) the mediating role of employee perceived warmth and competence. Design/Methodology/Approach - Data were collected from 108 employees of 74 bio and pharmaceutical companies in South Korea. Confirmatory factor analysis, path analysis, and a bootstrapping technique in structural equation model was performed to test the hypothesis. Findings - The paper found that perceived image of a company had a mediating effect on the relationship between a company’s environment/governance practices and its employees’ organizational commitment. Specifically, in relation to organizational commitment, environment practices were mediated by perceived competence, and governance practices were mediated by perceived warmth. Research Implications - This is one of the first studies to show how corporate environment, social, and governance practices can influence internal stakeholder perceptions and attitudes toward an organization. In particular, we showed in detail how environment, social, and governance practices affect employee perceptions of the company and ultimately improve their organizational commitment. While previous studies mostly focused on investigating the integrated effect of environment, social, and governance practices on corporate financial performance, this study verified how discriminatory characteristics of each practices have different effects on employee perceptions and attitudes.

Purpose - This research explores the impact of Environmental, Social, and Governance (ESG) practices on employee performance and well-being in private higher education institutions in Bandung, West Java. It seeks to provide insights into how effective ESG integration can enhance organizational performance and employee satisfaction. Methodology - A quantitative approach employing Partial Least Squares Structural Equation Modeling (PLS-SEM) analyzed the relationships among constructs: environmental practices, social practices, governance practices, and the dependent variable, employee performance and well-being. Data were collected from 270 respondents through stratified random sampling across various administrative roles in 138 private higher education institutions. Findings- The results showed that environmental practices positively impact employee performance and well-being, with social practices also contributing. Governance practices mediate and amplify these effects. These findings emphasize the importance of integrating sustainable practices into organizational strategies to improve employee outcomes and overall institutional performance. Originality—This study explores the impact of ESG practices on employee performance in private higher education institutions, focusing on sustainability to enhance engagement and productivity. Unlike previous research, which focused primarily on corporate sectors or public universities, it emphasizes the unique challenges of private institutions, particularly in Bandung, offering new insights into governance practices as mediators.

Sustainability has emerged as a crucial focus for enterprises navigating environmental, social, economic, and governance challenges. This study investigated the sustainable practices of medium enterprises in Northern Samar, Philippines—an under-researched, rural province where such businesses play a pivotal role in local development. Using a descriptive design and a modified questionnaire, the study assessed sustainability practices across environmental, social, economic, and governance dimensions from 80 medium enterprises (323 owners and employees) in Laoang, Allen, and Catarman. Among the sustainability dimensions, environmental practices ranked with the highest weighted mean (4.21), with safe hazardous waste disposal being the most widely practiced. Social practices (3.82) were moderately observed, particularly support for employee leave policies, while economic practices (3.89), such as fair pricing, were commonly implemented. Governance practices (3.86) showed commitment but needed further institutionalization. Outcomes highlighted strong environmental protection, compliance with regulations, and efficiency, though community reputation scored slightly lower. The study concluded that medium enterprises in Northern Samar demonstrate a foundational commitment to sustainability, particularly in environmental practices. However, gaps remain in areas such as training, organizational engagement, and support mechanisms, which hinder the broader implementation of sustainable practices. To address these challenges, targeted policies, capacity-building initiatives, and financial support are recommended. These actions can empower medium enterprises to become catalysts for inclusive, resilient, and sustainable local development.

The success of hotels and their contribution to the destination depends on the development of sustainability practices. The aim of this paper is to study possible interactions between environmental, economic and social sustainability practices with each other and with hotel performance. In these interactions, hotel performance is not considered as the final dependent variable. Hotel performance may play a mediating role as it may be considered as a consequence of environmental sustainability practices and as a means for economic and social sustainability practices. From a PLS analysis using data from 365 Spanish hotels, we find that environmental sustainability practices influence hotel performance and economic and social sustainability practices; hotel performance positively influences economic and social sustainability practices; and economic sustainability practices influence social sustainability practices. Moreover, hotel performance mediates the relationship between environmental sustainability practices and the other two dimensions of sustainability practices; and economic sustainability practices mediate the link between environmental and social sustainability practices. This study has theoretical and practical implications because it shows that environmental sustainability practices contribute to hotel performance, creating value for shareholders and owners; and environmental practices and the availability of financial resources contribute to the development of economic and social sustainability practices, also creating value for other stakeholders.

Objective: The objective of this research was to analyze the applicability of the sustainability tripod as a management mechanism to integrate environmental, economic and social practices into organizations. Methodology: The research was conducted through an integrative review, which involved the search, selection and analysis of scientific articles on sustainable business management. Databases such as Google Academic and SciELO were used. During the search process, inclusion criteria were applied, selecting only Brazilian scientific articles, in Portuguese language, complete, free, associated with the research theme and published between the years 2020 and 2023. Results and analysis: As a result, four scientific articles were selected for analysis. The articles addressed several aspects related to sustainable business management, highlighting the importance of the sustainability tripod as a mechanism to integrate environmental, economic and social practices into organizations. The studies examined showed how companies in different industries are adopting this model to promote sustainable practices in their operations. The analysis of the studies revealed that the application of the sustainability tripod as a management mechanism is fundamental to promote a more conscious and sustainable business management. By balancing environmental, economic and social practices, organizations not only achieve their business goals, but also contribute to the well-being of society and the preservation of the environment. Conclusion: Therefore, it is concluded that the effective integration of the sustainability tripod into business practices is fundamental not only for the long-term success of organizations, but also for the progress towards a fairer, equitable and environmentally conscious society.

Sustainable development practices have become very important for firms to go beyond short-term profitability, towards economic, environmental and social sustainability. This research aims to examine the relationship between a firm’s sustainable development practices and its financial performance. Modelled as a multidimensional construct, sustainable development practices are represented by environmental practices, social practices in the workplace and social practices in the community, while financial performance is determined by profitability and growth. Using a mixed method survey, data were obtained from 389 textile firms in Vietnam, where there is a dire need to promote sustainable and environmental practices. Data analysis using partial least squares structural equation modeling demonstrates that sustainable development practices positively affect financial performance directly and indirectly via customer loyalty, employee satisfaction and corporate reputation. The findings also reveal the moderating role of entrepreneurial orientation, whereby the impact of sustainable development practices on financial performance is stronger for firms that are more innovative, proactive and willing to take risks. Taken together, these findings provide support for firms to holistically implement sustainable development practices and adopt an entrepreneurial orientation.

PurposeThis study aims to analyze the interaction between environmental, social and governance (ESG) practices and digital capabilities in promoting business model innovation (BMI) in family firms. Specifically, it researches how ESG practices influence BMI in family firms, breaking down this influence into its ESG components.Design/methodology/approachWe used microdata from the Flash Eurobarometer 486 survey, conducted by the European Commission in 2020, which provides detailed data on the challenges and obstacles faced by European businesses. The survey included telephone interviews with key managers from 2,483 family-owned businesses across 27 EU countries.FindingsThe analysis found that the environmental, social and governance dimensions of ESG significantly enhance business model innovation in family firms. Additionally, the interaction between environmental practices and digital capabilities significantly enhances business model innovation in family firms, while the interactions between social or governance practices and digital capabilities do not show significant effects.Research limitations/implicationsThe study supports the theoretical framework that integrates ESG practices into business model innovation, providing empirical evidence for the concept of sustainable business models. It emphasizes the importance of environmental sustainability, social engagement and robust governance in driving innovation.Practical implicationsFamily business managers can use the findings to guide their innovation strategies by integrating ESG practices with digital capabilities. Policymakers can also benefit from understanding the importance of supporting ESG practices and digitalization in family businesses, fostering a regulatory environment that encourages sustainable innovation.Originality/valueThis research expands the theoretical understanding of how ESG practices and digital capabilities interact to foster BMI, particularly in family firms. By breaking down ESG practices into environmental, social and governance components, the study offers a detailed view of their interaction with digital capabilities.

Environmental, Social, and Governance (ESG) practices have gained increasing attention among companies in Malaysia as they strive to meet the expectations of stakeholders, especially investors. This study aims to environmental, social and governance (ESG) practice reported in the public-listed companies and the similarities among the industry sectors and to investigate the relationship between environmental, social and governance (ESG) practices and corporate financial performance. Grounded in Stakeholder Theory, this study employs descriptive and correlation analysis to assess the correlation between independent and dependent variables. A comprehensive content review of secondary data from the annual reports of selected public-listed companies in Malaysia was conducted, with data thoroughly documented in a meticulously prepared checklist. The sample consists of 41 public-listed companies across 10 distinct industry sectors. Data analysis was performed using the Statistical Package for Social Sciences (SPSS) Version 29. The findings revealed that Malaysian public-listed companies typically implemented structured environmental, social and governance practice (ESG) practices in Malaysia which are perceived to influence corporate financial performance. The analysis demonstrates an insignificant weakly negative relationship between environmental, social and governance (ESG) practices and corporate financial performance. Despite several limitations, this study offers recommendations for future research and practice.

This study examines the integration of Environmental, Social, and Governance (ESG) practices and their impact on organizational performance within Saudi Arabia’s oil and gas sector. The main objective was to determine how environmental initiatives, social responsibility programs, and governance mechanisms influence financial performance, shareholder value, and competitiveness amid the country’s sustainability transformation. ESG dimensions were treated as independent variables, while organizational performance was identified as the dependent variable. A quantitative research design was used, employing a structured survey distributed to professionals across various segments of the oil and gas value chain. The instrument was validated through expert review and pilot testing to ensure reliability. Descriptive statistics (frequency, mean, and standard deviation) were used to summarize adoption levels, while Spearman correlation tested the relationships among ESG dimensions and profitability. Results revealed that environmental practices were partially adopted, emphasizing energy efficiency over carbon capture and renewable integration, yet showed a moderate positive correlation with profitability (r = 0.437, p = 0.001). Social practices achieved the highest adoption and demonstrated the strongest relationship with profitability (r = 0.614, p = 0.001), particularly through health, safety, and inclusion initiatives. Governance practices were moderately implemented but significantly associated with profitability (r = 0.558, p = 0.001). Respondents identified high operational costs and regulatory ambiguity as main barriers, while opportunities emerged in innovation and investor confidence. In conclusion, ESG adoption positively contributes to financial and organizational performance. While environmental initiatives remain underdeveloped, social and governance dimensions drive measurable business value. ESG integration thus represents a strategic approach for achieving both profitability and sustainability in the evolving global energy landscape, supported by national policy frameworks such as Saudi Vision 2030 and the Saudi Green Initiative.

This study examines the effects of environmental, social and governance (ESG) practices on consumer brand identification and brand loyalty in the cosmetics industry. A structured questionnaire was developed based on validated scales from past studies after which the data was collected from female customers of cosmetic brands in Malaysia. In total, 307 valid responses were obtained from the respondents and analysed via the Partial Least Squares Structural Equation Modelling (PLS-SEM). The analysis revealed that environmental and governance practices were important predictors of consumer brand identification and positively affected brand loyalty. Furthermore, brand identification was found to mediate the effect of environmental and governance practices on brand loyalty. In contrast, the effect of social practices on brand identification was found to be insignificant and no mediating effect of brand identification was observed between social practices and brand loyalty. This study makes significant contributions to practice by making a strong business case for ESG to be adopted as a legitimate corporate strategy in fostering band identification and brand loyalty. The study also enriches the literature on ESG practices, brand identification and loyalty with new insights from the cosmetics industry in Malaysia; an area that has not received much scholarly attention till date.

To achieve sustainable development, it is necessary for multinational enterprises (MNEs) to transfer their environmental practices and technologies to developing countries. With our concern about environmental management transfers, we collected data from 96 subsidiaries in a questionnaire survey conducted in early 2010 in Vietnam. Government regulation, environmental strategy, organization and environmental performance are key factors in an analytical framework that depends on resource-based view. A multi-regression method was used for analysis. We found that ISO14001 and green purchasing in parent firms are positively related to the international transfer of these practices. The results also suggest path dependency in international transfer of environmental practices. It should be emphasized that firms increasingly recognize environmental practices as sources of competitive advantage.

ABSTRACTThis research explores how resource‐based views (RBV) and institutional pressures affect sustainability practices in SMEs and examines the impact of customer orientation on their performance. Evidence linking sustainable practices to enhanced SME performance is limited. A total of 305 SMEs participated in the survey, and the data were analyzed using AMOS—Structural Equation Modeling. Model 1 examines the impact of institutional theory and RBV, showing that barriers impeding sustainability have no significant mediating effect on environmental practices but a negative impact on social practices. To determine the influence of customers on firm performance, Model 2 was conceptualized, showing the mediating effects of social and sustainable practices between motivation and firm performance. The results indicate that environmental practices are unlikely to provide opportunities for increased performance, given their negative mediating effect. This research makes several valuable contributions to SME literature on sustainability in developing countries, which are useful for practitioners.

The objective of this paper is to analyze the relationship between the social and environmental practices of Corporate Social Responsibility (CSR), and the economic–financial, social, and environmental performance in Mozambican companies, from the managers’ perspectives. The data were collected from a sample of 227 companies through a survey questionnaire. We used structural equation modelling to analyze how the managers correlate the different social and environmental practices with performance at the financial, social, and environmental levels. The results showed that the relationship between all major components of the social and environmental practices, and the economic–financial, social, and environmental performance is positive but insignificant with the exception of the social practices of community support, which has a weak relationship with the economic–financial performance, environmental performance, and social performance, as well as the environmental practices. The data indicate that there is a need for strengthening the appropriate economic–financial incentive policies and strategies for the agents who promote good CSR practices in the country, in order to obtain satisfactory, measurable, and comparable economic–financial, social, and environmental performance.