ABSTRACT: This research delves into the impact of Environmental, Social, and Governance (ESG) metrics on economic practices, focusing on a comparative analysis between developing countries and Europe from 1960 to 2021. It explores how ESG metrics, once peripheral in economic analyses, have become pivotal in shaping economies and societies globally. The study highlights the emerging importance of ESG in understanding economic resilience, societal well-being, and investment priorities, especially in the context of a globalized landscape. Employing a robust mixed-methods approach, the study integrates quantitative and qualitative analyses to examine ESG metrics’ evolving role. Utilizing World Bank data, it encompasses a comprehensive review of 239 regions and nations over a span of six decades. The quantitative component includes descriptive and time series analyses, alongside correlation and regression techniques. Complementing this, a qualitative cultural and economic synthesis provides deeper insight into the data, positioning ESG criteria at the crossroads of financial imperatives, societal obligations, and cultural dynamics. The study uncovers significant correlations between higher Gross Domestic Product (GDP) levels and advanced ESG practices in Europe, indicative of societal values that emphasize sustainability. It reveals varying ESG performances across Western and Eastern European countries compared to developing nations, influenced by distinct cultural economies. The research highlights how regional geopolitical events, cultural norms, and values have shaped diverse trajectories in ESG metrics’ evolution. These findings offer nuanced insights into the complex influences of ESG metrics across different economic, sociopolitical, and cultural landscapes. The study’s outcomes are vital for policymakers and investors, unveiling the intricate nuances and implications of ESG trends. It underscores the need for nuanced policy strategies that consider the unique cultural and economic backgrounds of regions, particularly in developing countries. The research advocates for a cultural-economic perspective in sustainable development, emphasizing the dynamic interplay between society, culture, and economy. The findings suggest that embracing diverse ESG applications can lead to more effective and culturally sensitive approaches to economic development and governance. Conclusively, this research offers a comprehensive cultural-economic perspective on the role of ESG metrics in shaping sustainable development. It serves as a foundational analysis for future studies and policy formulations, aiming to enhance the understanding and application of ESG criteria in diverse economic and cultural settings.
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