ESG, Brand Trust and Brand Loyalty

Abstract

The concept of ESG (Environmental, Social and Governance) has emerged as a key element of firm value. Its an important tool for companies to achieve sustainable development and improve their competitiveness. As a critical driver of sustainable development, companies have the responsibility to manage ESG well. Clarifying the benefits that ESG issues can bring to companies is a good way to encourage them to manage ESG. This paper aims to determine how firms ESG activities affect brand trust and brand loyalty to evaluate the benefits of firms ESG activities. Based on a sample of 169 online questionnaire, this study used SPSS to analyze the collected data and had the following results. First, it was discovered that brand trust and brand loyalty are positively impacted by all three ESG dimensions. Additionally, this study's findings showed that brand trust positively mediates the association between brand loyalty and ESG performance. According to the results of this work, firms ESG practices are not only satisfying the needs of sustainable development but also the needs of the enterprise itself. This study emphasizes the importance of ESG and provides practical implications for firms ESG activities.