Published Online:October 2024
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP041024
Author Name:Mohd Faisal Afridi and Kompalli Sasi Kumar
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:58-84
This paper presents a comprehensive analysis of the dynamic relationship between environmental, social and governance (ESG) initiatives and key financial performance indicators in the 21st century corporate landscape. It is grounded in the triple bottom line (TBL) framework, exploring the interplay between people, planet and profit, and extends to a detailed examination of ESG factors. Using data from 19 Indian listed companies across various industries, the study employs quantitative methodologies to investigate the impact of diverse ESG variables like board size, hazardous waste and CO2 and other emissions on financial metrics like market capitalization, return on assets (ROA) and earnings before interest and taxes (EBIT). The findings reveal that corporations embedding ESG principles into their strategic agendas are poised for sustainable growth and augmented market valuation. The study enriches our comprehension of the intricate ties between ESG factors and financial performance, offering valuable insights for stakeholders, policymakers and corporate leaders. It firmly positions ESG as a strategic asset in the contemporary business landscape, vital not only for ethical adherence but also for financial prosperity and enduring viability. The investigation lays the groundwork for future studies in this dynamic and increasingly pertinent domain, stressing the imperative for a harmonized pursuit of ESG goals within the corporate sphere.
The 21st century corporate landscape stands at a dynamic crossroads. The familiar pathways sculpted by globalization and digitalization are intersected by newer trails paved by sustainability and its key facets (Barbosa et al. 2023).