Sustainable Company: Examining the Influence of Environmental, Social and Governance in Improving Company Performance
The growing awareness of sustainability has prompted companies to adopt more responsible and ethical business practices. Consequently, corporate performance is no longer assessed solely based on economic profit but also on how effectively companies mitigate negative environmental and social impacts. In this context, the implementation of environmental, social, and governance (ESG) principles has become a crucial factor influencing corporate performance. However, studies on the relationship between ESG practices and firm performance in emerging markets, particularly in Indonesia, remain limited and inconclusive. Addressing this gap, this study aims to analyze the impact of ESG implementation on the operational performance and market value of companies listed on the Indonesia Stock Exchange (IDX). Using a panel data regression approach with secondary data from IDX-listed companies, the analysis reveals a significant positive relationship between ESG practices and firm performance. Companies that integrate ESG principles tend to exhibit stronger operational outcomes, enhanced investor confidence, and improved market valuation. These findings highlight the importance of ESG adoption not only as a tool for long-term sustainability but also as a strategic advantage that can strengthen competitiveness in a dynamic business environment.
Aaker, D. A. (2009). Managing brand equity: Capitalizing on the value of a brand name.
Ajzen, I. (2005). Attitudes, personality, and behavior.
Babić Rosario, A., de Valck, K., & Sotgiu, F. (2020). Conceptualizing the electronic word-of-mouth process: What we know and need to know about eWOM creation, exposure, and evaluation. Journal of the Academy of Marketing Science, 48(3), 422–448. https://doi.org/10.1007/s11747-019-00706-1
Bilgin, Y. (2018). The Effect Of Social Media Marketing Activities On Brand Awareness, Brand Image And Brand Loyalty. Business & Management Studies: An International Journal, 6(1), 128–148. https://doi.org/10.15295/bmij.v6i1.229
Calvo-Porral, C., & Lévy-Mangin, J. P. (2017). Store brands’ purchase intention: Examining the role of perceived quality. European Research on Management and Business Economics, 23(2), 90–95. https://doi.org/10.1016/j.iedeen.2016.10.001
Cheung, M. L., Pires, G. D., & Iii, P. J. R. (2019). Developing a conceptual model for examining social media marketing effects on brand awareness and brand image. In Int. J. Economics and Business Research (Vol. 17, Issue 3).
Christodoulides, G., Jevons, C., & Bonhomme, J. (2012). Memo to Marketers: Quantitative Evidence for Change. Journal of Advertising Research, 52(1), 53–64. https://doi.org/10.2501/JAR-52-1-053-064
Dave Chaffey, F. E.-C. (2016). Digital Marketing: Strategy, Implementation, and Practice. www.pearson.com/uk
Divya Georgiana Walewangko, I., Komang Gde Sukarsa, I., Gusti Ngurah Lanang Wijayakusuma, I., Putu Eka Nila Kencana, I., Gusti Ayu Made Srinadi, I., Sari Widiastuti, R., Studi Matematika, P., & Matematika dan Ilmu Pengetahuan Alam, F. (n.d.). Analysis Of Consumer Preferences In Consuming Processed Coffee Products At Cafe Nectar Bali.
Everett M. Rogers. (2003). Diffusion of Innovations: Vol. 5th Edition.
Fisbein, & Ajzen. (1975). Belief, attitude, intention and behaviour: An introduction to theory and research.
Fowler, F. J. (2014). Survey Research Methods (5th ed.). Sage Publications.
Haines, G. H., Howard, J. A., & Sheth, J. N. (1970). The Theory of Buyer Behavior. Journal of the American Statistical Association, 65(331), 1406. https://doi.org/10.2307/2284311
Hair, J., Hult, G. T. M., Ringle, C., Sarstedt, M., Danks, N., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A workbook.
Han, H., Yu, J., Kim, H.-C., & Kim, W. (2018). Impact of social/personal norms and willingness to sacrifice on young vacationers’ pro-environmental intentions for waste reduction and recycling. Journal of Sustainable Tourism, 26(12), 2117–2133. https://doi.org/10.1080/09669582.2018.1538229
Hennig-Thurau, T., Gwinner, K. P., Walsh, G., & Gremler, D. D. (2004). Electronic word-of-mouth via consumer-opinion platforms: What motivates consumers to articulate themselves on the Internet? Journal of Interactive Marketing, 18(1), 38–52. https://doi.org/10.1002/dir.10073
Hollebeek, L. D., & Macky, K. (2019). Digital Content Marketing’s Role in Fostering Consumer Engagement, Trust, and Value: Framework, Fundamental Propositions, and Implications. Journal of Interactive Marketing, 45(1), 27–41. https://doi.org/10.1016/j.intmar.2018.07.003
Kajtazi, K., & Zeqiri, J. (2020). The effect of e-WOM and content marketing on customers’ purchase intention. In Int. J. Islamic Marketing and Branding (Vol. 5, Issue 2).
Park, C., & Lee, T. M. (2009). Information direction, website reputation and eWOM effect: A moderating role of product type. Journal of Business Research, 62(1), 61–67. https://doi.org/10.1016/j.jbusres.2007.11.017
Patton, M. Q. (2015). Qualitative Research & Evaluation Methods: Integrating Theory and Practice (4th ed.). SAGE Publications.
Pulizzi, J. (2013). More Praise for Epic Content Marketing.
Rosillo-Díaz, E., Blanco-Encomienda, F. J., & Crespo-Almendros, E. (2019). A cross-cultural analysis of perceived product quality, perceived risk and purchase intention in e-commerce platforms. Journal of Enterprise Information Management, 33(1), 139–160. https://doi.org/10.1108/JEIM-06-2019-0150
World Coffee Portal. (2023). Q&A Wheels of Fortune – Jago CEO & Co-founder, Yoshua Tanu. https://www.worldcoffeeportal.com/Latest/InsightAnalysis/2023/February/Q-A-Wheels-of-fortune-%E2%80%93-Jago-CEO-Co-founder,-Yoshu
Zeithaml, V. A. (1988). Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence. Journal of Marketing, 52(3), 2–22. https://doi.org/10.1177/002224298805200302
Copyright (c) 2025 Muhammad Saiful Hakim, Muhammad Haris Jauhari, Ika Safitri
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
