The influence of ESG pratices on the creation of intangible value: a systematic literature review

The growing prominence of Environmental, Social, and Governance (ESG) considerations has fundamentally reshaped how organizations define performance, risk, and long-term value creation. While prior research has extensively examined the relationship between ESG performance and financial outcomes, comparatively less attention has been paid to the organizational mechanisms through which ESG commitments are operationalized. In particular, the role of human resource (HR) practices as a conduit between ESG strategies and financial value remains fragmented across multiple research streams. This systematic literature review addresses this gap by synthesizing existing evidence on ESG-oriented HR practices and their implications for long-term financial value creation. Adopting a PRISMA-compliant systematic literature review methodology, the study integrates insights from sustainable HRM, green HRM, and ESG–financial performance research. Drawing on a broad range of conceptual, empirical, and meta-analytic studies published in leading peer-reviewed journals, the review examines how HR practices aligned with environmental, social, and governance priorities influence firm-level financial outcomes such as profitability, firm value, stock market performance, and risk. The analysis reveals that ESG-oriented HR practices are rarely associated with immediate financial gains but tend to generate value through indirect and cumulative mechanisms operating over longer time horizons. The review identifies several key pathways linking ESG-HR practices to financial performance, including human capital enhancement, employee engagement and retention, innovation and operational efficiency, reputational gains, and risk reduction. Importantly, the evidence highlights that these effects are highly contingent on issue materiality, industry context, institutional environments, and the degree of integration of HR practices within broader organizational systems. Firms that adopt coherent bundles of ESG-aligned HR practices, rather than isolated or symbolic initiatives, are more likely to experience sustainable financial benefits. At the same time, the review documents significant measurement challenges and empirical heterogeneity arising from inconsistent ESG ratings, limited HR-specific indicators, and methodological issues related to causality and endogeneity. These limitations underscore the need for more granular, longitudinal, and context-sensitive research designs. This review advances understanding of how people management practices underpin ESG performance and sustainable value creation. By positioning HRM as a central operational bridge between ESG commitments and financial outcomes, the study offers a more nuanced perspective on the business case for ESG and identifies promising directions for future research and managerial practice.

The major research question of this paper is how boards of directors’ practices and performance can facilitate the new finance focus on sustainable, long-term value creation. This new finance focus presents opportunities to strengthen corporate performance which enhances the gatekeeper role of boards of directors in helping both shareholders and stakeholders. The following topics are discussed and analyzed in this paper: potential examples, strategic analysis, sustainability analysis, and the circular economy. We discovered several guiding principles based on previous literature, regulatory proposals, and industry practices. Effective boards of directors need to be engaged in sustainable strategy formation and make sure long-term sustainable value creation continues to develop and does not erode. They need to have relevant industry knowledge, diverse expertise, and a proclivity for thinking independently in both good times and bad times, such as the coronavirus pandemic. They also need to develop a clear understanding of sustainable business strategies and how long-term value is created and driven through innovation and the deployment of resources. In addition, we find that boards can assess and monitor ways to measure and manage long-term value creators and drivers and encourage their companies to become involved in the circular economy with its $4.5 trillion investment opportunities. Future research could use case studies and board interviews to investigate boards of directors’ practices and performance, concerning how boards have helped develop strategies and procedures to facilitate this new finance focus on long-term sustainable value creation.

This article provides additional insight on the effectiveness of long-term value creation as a legally enforceable norm in the corporate governance system and provides a framework to anchor long-term value creation in takeover decisions. Since the 2008 financial crisis, a growing number of voices in the business world, government and academia, have urged Western economies to move towards a long-term sustainable growth agenda. Boards have a vital part to play in the development of responsible companies. Corporate governance should encourage boards to do so. This could be viewed as a reaction to the negative effects of capital markets and the resulting short-termism. One key method to encourage sustainable value creation in companies is by incorporating long-term value creation as an open norm in corporate governance systems. In the case of a hostile takeover, the risk of short-termism is exacerbated. As a guiding principle, long-term value (LTV) creation should prevent hostile takeovers that could harm the success of the company concerned. In this research paper, we argue that the recent shift in Dutch case law and revision of the Corporate Governance Code in the Netherlands may serve as an important catalyst for ‘sustainable’ takeover decisions. Through ground-breaking judgments by the Dutch Supreme Court and Enterprise Court, Cancun and Akzo Nobel, LTV has acquired the status of an enforceable norm. We investigated whether this legal norm is empirically substantiated. The research results allow us to make well-grounded statements about the effectiveness of enforcing LTV in future hostile takeover situations.

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This article provides additional insight on the effectiveness of long-term value creation as a legally enforceable norm in the corporate governance system and provides a framework to anchor long-term value creation in takeover decisions. Since the 2008 financial crisis, a growing number of voices in the business world, government and academia, have urged Western economies to move towards a long-term sustainable growth agenda. Boards have a vital part to play in the development of responsible companies. Corporate governance should encourage boards to do so. This could be viewed as a reaction to the negative effects of capital markets and the resulting short-termism. One key method to encourage sustainable value creation in companies is by incorporating long-term value creation as an open norm in corporate governance systems. In the case of a hostile takeover, the risk of short-termism is exacerbated. As a guiding principle, long-term value (LTV) creation should prevent hostile takeovers that could harm the success of the company concerned. In this research paper, we argue that the recent shift in Dutch case law and revision of the Corporate Governance Code in the Netherlands may serve as an important catalyst for ‘sustainable’ takeover decisions. Through ground-breaking judgments by the Dutch Supreme Court and Enterprise Court, Cancun and Akzo Nobel, LTV has acquired the status of an enforceable norm. We investigated whether this legal norm is empirically substantiated. The research results allow us to make well-grounded statements about the effectiveness of enforcing LTV in future hostile takeover situations.

The changing global business landscape has placed human capital as one of the strategic elements in creating competitive advantage and improving organisational performance. In this context, understanding the role of human capital on value creation and its impact on financial performance has become increasingly relevant. This study aims to review and synthesise the literature that discusses the relationship between human capital, value creation, and financial performance through a Systematic Literature Review (SLR) approach. This type of research is descriptive qualitative that relies on secondary data from scientific articles published in the period 2009-2024. The literature analysed was selected from reputable databases such as Scopus, Web of Science, ScienceDirect, and Google Scholar, using a purposive sampling technique, with a total of 60 articles that met the inclusion criteria. The location and time of the study were not geographically limited due to the global nature of the literature. The results of the analysis show that human capital directly and indirectly affects financial performance, through a value creation mechanism that includes innovation, efficiency, and optimisation of internal processes. The effectiveness of the relationship is also influenced by various contextual factors such as organisational strategy, work culture, and industry dynamics. The implications of these findings drive the importance of strategically integrating human capital development with value creation processes to sustainably improve organisational financial performance.

<b>Purpose:</b> The aim is to evaluate level of challenges encountered by firms in implementing sustainable business practices, their dimensions, and how those challenges can be combated for long-term value creation.<br /> <b>Motivation:</b> The pursuit of sustainable development goals (SDGs) has recently changed how businesses are conducted and shifted organizational focus from wealth maximization to value maximization. Now, definition of a successful business is linked to its ability to create long-term value. This pursuit has been reported to yield a different result level over years, which could be due to some challenges that may not be found in annual reports.<br /> <b>Methodology:</b> As a case study, this study focuses on four leading oil and gas firms in Nigeria, with 20 respondents drawn from each company, making a sample of 80 respondents. Descriptive statistics were used to analyze the primary data gathered, which were further subjected to empirical testing using the Z-test technique.<br /> <b>Findings:</b> Evidence revealed significant and low challenges in implementing sustainable business practices for long-term value creation. Results from this study also show three basic challenges in implementing sustainable business practices in West Africa: instability challenges, which are mostly external, structural challenges, which are mostly internal, and governance challenges, which are perceived as both internal and external.<br /> <b>Research implications:</b> Several avenues have been suggested for future studies as a follow-up on this study, including conducting a study to identify extent to which each of challenges identified in this research affects sustainability pursuit and long-term value creation within or outside oil and gas industry and across countries.<br /> <b>Practical implications:</b> Outcome of this study serves to develop sustainable business practices, policies, and strategies by enhancing an understanding of challenges in implementation and offering advancement options.<br /> <b>Social implications:</b> The conceptualization provided in this study informs government and international policymakers on the appropriateness of existing governance models for the attainment of sustainable development, the firm-level limitations and areas to focus policy emphasis that would help firms achieve long-term value creation for sustainable development.<br /> <b>Originality/value:</b> This study is one of the first contemporary studies to evaluate the firm-level challenges to sustainable development and long-term value creation in sub-Saharan Africa. In its uniqueness, this study addresses the challenges identified by offering suggestions for advancement. Also, the focus on oil and gas firms presents a “worst-case scenario” of the implementation challenges of sustainable business practices.

PurposeThis study aims to synthesize the body of sustainable value creation (SVC) research within sustainable business model literature through a systematic literature review.Design/methodology/approachA systematic literature review of 85 research articles of SVC through business models from 2011 to 2020.FindingsThe systematic literature review allowed the authors to identify five core SVC elements: value forms, stakeholders, temporal view, spatial view and tensions and conflicts. Moreover, a conceptual framework presenting the interrelationships of the SVC elements is proposed.Practical implicationsThis study carries implications for practitioners in the form of guiding questions provided in the framework. Those questions help responsible managers to plan, identify and choose strategic sustainability actions and to develop companies’ business models aiming to lead to the creation of long-term sustainable value in different time frames and locations or different parts of the value network. Additionally, the framework guides managers to identify and manage potential tensions and conflicts which can otherwise hinder SVC.Originality/valueTo the best of the authors’ knowledge, this study is the first systematic literature review of SVC through business models with the conceptual development of SVC. The study synthesizes the fragmented literature to identify SVC elements and build basis for conceptualization of SVC through business models.

Although corporate sustainability has gained more attention and companies have recently showed a growing interest in sustainable practices, the progress towards sustainable development has been slow leading to increasing environmental and social challenges. Business model innovations are recognized as a key to the creation of sustainable business and as a bridge between company level and system level changes. Sustainable business model innovations create, deliver and capture economic, social, and ecological value for customers and other stakeholders in various societies. The aim of this chapter is to deepen the understanding of the ways how companies create and capture sustainable value through business models in a larger operation system. From the theoretical perspective, the chapter adopts the transition theory and the concept of strong sustainabilit y for understanding socio-technical transitions and business model changes towards sustainability. Here the focus is on companies’ dualistic role pursuing sustainable development targets—both contributing to sustainability within the business dimensions, and assisting the broader systemic change through the new sustainable business models. Furthermore, the chapter deals with the external factors that either enable or hinder companies to transform their existing business models towards sustainability. By reviewing previous literature, this study develops preliminary frameworks combining the approaches of transition management, sustainable value creation and corporate sustainability levels. The work aims to decrease the existing gap between the literature of system transition and business models. The frameworks can be applied in the future in analyzing new sustainable business models, value processes , value creation and capture, and broader systemic changes towards sustainability.

Purpose This study systematically reviews the state of knowledge of intellectual property (IP) management in family firms and identifies promising avenues for future research. Despite the growing importance of IP as a strategic resource, its integration into family business research remains fragmented and underdeveloped. Design/methodology/approach A systematic literature review of 75 peer-reviewed journal articles was conducted, using a transparent and structured approach. The analysis synthesizes the findings across six thematic areas: types of IP, IP portfolio strategies, value creation, cost considerations, risk management and organizational structure. It also incorporates contextual influences and outcome dimensions. Findings This review reveals that family firms tend to adopt a selective and control-oriented approach to IP portfolio management. While research on formal tools such as patents remains prominent, evidence suggests that family firms also rely on informal mechanisms such as secrecy, particularly when these align with long-term goals and the preservation of socioemotional wealth. Contextual factors, such as family involvement, firm resources and industry conditions, influence how family firms manage intellectual property. In turn, IP management practices influence outcomes related to innovation, financial performance and family-level goals. Originality/value This study consolidates a previously dispersed body of literature, providing the first comprehensive synthesis of IP management practices in family firms. It maps the conceptual landscape, identifies research gaps and proposes a detailed agenda to guide future research. This review offers both academic insights and practical implications for family firm stakeholders, aiming to leverage IP for innovation and sustained competitive advantage.

Green finance and corporate sustainability have moved from marginal topics to central items on corporate, investor, and policy agendas—especially in emerging economies where the trade-off between rapid industrialization and environmental protection is acute. Environmental, Social and Governance (ESG) scores are widely used by investors, asset managers, regulators and rating agencies as proxies for corporate sustainability, risk management, and long-term value creation. Yet, an increasing body of research and regulatory action points to a troubling phenomenon: the weak or inconsistent relationship between ESG scores and financial performance in many emerging markets, and the growing incidence of “greenwashing” or misreporting that undermines both investor trust and the efficacy of green finance channels. This paper interrogates the “corruption” (i.e., distortion, decoupling, and misuse) between ESG scores and firm financial outcomes in emerging economies, analyzing theoretical mechanisms, empirical findings up to 2024, and institutional drivers (market incentives, regulatory gaps, rating heterogeneity, and audit/verification weaknesses). We adopt a mixed-methods design. First, a systematic literature synthesis up to 2024 maps evidence on ESG-financial performance linkages, with attention to emerging markets’ heterogeneity. Second, a critical review of regulatory enforcement cases and investigative journalism illustrates the operational manifestations of greenwashing and ESG-score gaming. Third, the paper proposes an empirical framework and methodology for researchers seeking to quantify the decoupling between reported ESG scores and value creation—highlighting potential econometric pitfalls (measurement error, sample selection, endogeneity, and omitted variables). The analysis shows that while many studies (and meta-analyses) report neutral to positive ESG–financial performance relationships in advanced markets, evidence in emerging economies is mixed and often weak; some high-profile enforcement actions reveal material misstatements and greenwashing that depress investor confidence and distort capital allocation. Notably, the heterogeneity in ESG methodologies and coverage, the reliance on voluntary disclosures, and under-resourced verification infrastructure are central causes for observed decoupling (i.e., “corruption” of the ESG signal). There are multi-pronged policy and practice implications. The regulators need to enhance the levels of disclosure, third-party validation, and customized green taxonomies based on emerging market conditions. The rating providers are encouraged to make methodologies more transparent, have uncertainty bands around scores, and have the metrics being consistent with materiality per sector. Asset managers and financial institutions require greater stewardship, due diligence and proactive supervision to prevent the use of raw scores ranking. As a researcher, the paper presents a sound empirical design (difference-in-differences, instrumental variables, and sample stratification by data quality) to statistically conclude on the effects of ESG on the profitability, cost of capital and market valuation in emerging economies. In sum, advancing green finance and genuine corporate sustainability in emerging markets requires improving information quality and governance: without that, ESG scores risk becoming symbolic labels rather than reliable guides for capital allocation.

Environmental, social, and governance (ESG) considerations have become central to infrastructure finance as investors, governments, and communities increasingly demand sustainable outcomes alongside stable long-term returns. This paper develops a conceptual framework for integrating ESG principles, sustainability objectives, and long-term value creation within infrastructure finance decision-making. The framework responds to persistent challenges associated with capital-intensive assets, extended project lifecycles, regulatory complexity, and growing exposure to social and environmental risks. The proposed framework is structured around four interconnected pillars: ESG-aligned capital allocation, sustainability-integrated risk assessment, long-term value optimization, and adaptive governance and monitoring. ESG-aligned capital allocation embeds environmental stewardship, social inclusion, and governance quality into project selection and funding prioritization processes. Sustainability-integrated risk assessment expands conventional financial risk analysis to incorporate climate transition risk, physical climate impacts, social license to operate, and governance effectiveness. Long-term value optimization emphasizes lifecycle-based performance evaluation, recognizing that infrastructure assets generate value through operational resilience, service reliability, and societal benefits beyond short-term financial metrics. Adaptive governance and monitoring ensure continuous performance tracking, transparency, and accountability, enabling dynamic adjustment of investment strategies as regulatory, technological, and stakeholder conditions evolve. By positioning ESG and sustainability as core value drivers rather than external constraints, the framework reframes infrastructure finance as a strategic tool for achieving durable economic, social, and environmental outcomes. The framework also highlights the role of institutional investors, development finance institutions, and policymakers in aligning incentives, standards, and reporting mechanisms to support sustainable infrastructure development. Conceptually, the study contributes to the infrastructure finance literature by integrating ESG theory with long-term value creation and investment governance perspectives. Practically, it offers a structured decision-support approach for evaluating infrastructure investments across diverse sectors and geographies. The framework is intentionally flexible, allowing adaptation to varying regulatory contexts, financing structures, and investor risk appetites. It further provides a foundation for future empirical research, quantitative modeling, and scenario analysis examining the financial materiality of ESG integration in infrastructure portfolios, particularly under conditions of climate uncertainty, demographic change, and accelerated sustainability transitions. These insights collectively support more resilient infrastructure financing models capable of balancing profitability, responsibility, and intergenerational value creation worldwide across diverse economic systems.

Purpose Research on the significance of corporate social responsibility (CSR) and value creation is nascent as compared to CSR and financial performance. The concept of value is also evolving because of changing business environments, globalization and the expanded idea of CSR. Nowadays, managers expect a more quick, pragmatic approach to satisfy valid stakeholder claims while simultaneously creating competitive advantage through reputation and investor value. The paper aims to examine the impact of CSR on the market and sustainable value creation through CSR expenditure in India and the moderating role of pressure-sensitive institutional investors (PSII). Design/methodology/approach The study used panel data regression methodology on a sample of 1,845 non-financial Indian firms from 2015 to 2021. Findings CSR creates market and sustainable value for non-financial Indian firms in line with stakeholder theory. The authors find a positive moderating role of governance represented by PSII on CSR and market value creation but not on sustainable value. Research limitations/implications The study is based on secondary data. CSR, despite being a regulatory obligation, provided long-term benefits that increased their sustainable growth rate. The results highlight the importance given by financial markets to CSR activities. Other types of institutional investors can also be examined in future research. CSR can be embedded in the core operations of the firm, which can help in fostering a culture of sustainability and responsible business practices that benefit firms and society as a whole. Tax incentives can be provided to firms investing in CSR. Practical implications CSR provides long-term benefits to the firm, which enhances the goodwill and integrity of the firm in the market. The results reveal that besides capital market investors, firms are subject to the scrutiny of consumers, communities and the government as expectations rise and information spreads faster, which can have repercussions. CSR helps in meeting such expectations and the perceived value of the firms. Managers and chief executive officers (CEOs) can pay attention to the type of institutional investors like PSII, which can be formed as a part of the firm’s CSR strategy. Social implications The positive impact of CSR on sustainable value expresses a long-term management orientation based on the improvement of stakeholder relations and the associated environmental impacts referring to cohesion and consensus, market opportunities and strengthened reputation and image. A sustainable company involves a conscious and continuing effort in the equilibrium between contrasting stakeholders’ expectations in an attempt to optimize value creation. Tax exemption can be provided for CSR activities. Originality/value The authors contribute to the scant literature on CSR and value creation, especially sustainable value, as most of the prior studies are not empirical on sustainable value in the Indian context. Managers and CEOs can pay attention to the types of institutional investors like PSII, which can be formed as a part of the firm’s strategy.

These type of studies examining (CSR) corporate social responsibility initiative impact on financials’ performances within commercialized bank sector; focus specifically on environmentally, sociality, and Governance (E.S.G) drivers. Utilizing mixed-methods approaches, panel data from 147 global banks spanning 2015 to 2024 was analyzed throgh fixed-effects regression and mediation analysis, complemented by qualitative case studies. This findings’ reveal the significant positive relationship between CSR engagement and key financial performance indicators such as R.O.A (Return-on-Assets); R.O.E (Return-on-Equity); as well as stocked Pricing Stabilities. Governance’s practices emerging as the most influential ESG Component; underscoring the importance of transparent and ethical management. Social responsibility effects enhanced customer loyalty and community trust, while environmental initiatives that authentic integration of ESG factors into business strategy is crucial to realizing financial benefits, while superficial CSR efforts provide limited value. Based on these findings, recommendations included embedding ESG principles into core banking operations, strengthening governance frameworks, expanding social inclusion initiative, and adopting sustainable environmental practices. This research contributes to the growing literature on CSR and financial performance by offering empirical evidences as well as practical-insights to banks, regulators, as well as stakeholders aiming to foster sustainable growth and long-term value creation in the banking sector.

In a continuously dynamic economy, both risk management and sustainability are elements that must be constantly monitored. This study analyzes the link between risk management, sustainability, and the financial performance of companies through a systematic literature review of key articles from bibliographic databases. A total of 9092 publications indexed in the Web of Science database (2020–2024) were analyzed using bibliometric analysis with VOSviewer. Findings suggest a positive relationship between effective risk management, sustainable business practices, and financial performance. Firms that integrate risk assessment into sustainability strategies achieve greater resilience and improved outcomes. Research highlights the importance of transparency in risk identification and reporting, particularly in sustainability reports, as a driver of long-term performance and value creation. The study also identifies disparities in implementation across industries and regions, with emerging markets facing structural challenges in adopting comprehensive risk–sustainability frameworks. These findings emphasize the need for sector-specific risk strategies and stronger policy support to maximize financial benefits. This research provides valuable insights for financial managers and researchers. The field remains dynamic, offering new perspectives for future studies and policy development.