Assessing The Impact Of Environmental, Social And Governance Sustainability On Firm Performance And Value

Abstract

This study examines the relationship between Environmental, Social, and Governance (ESG) sustainability practices and firm performance and value. Drawing on a sample of non-public manufacturing firms in the Greater Accra Region, the study employs hierarchical regression analysis to assess the impact of ESG practices on firm performance and value while controlling for firm size and age. The findings reveal significant positive relationships between ESG practices and both firm performance and value. Specifically, environmental sustainability initiatives positively influence firm performance and value, alongside social and governance sustainability practices. These results underscore the strategic importance of integrating ESG considerations into corporate strategies to enhance competitiveness, mitigate risks, and create long-term value for stakeholders. The study contributes to the literature by offering insights into the mechanisms through which ESG practices influence organizational outcomes and provides practical implications for practitioners and policymakers. Further research avenues include longitudinal and comparative studies to explore the long-term effects and regional variations in the relationship between ESG practices and firm performance and value.