The COVID Crisis Impact on Responsible Business Performance in G7 Countries: Empirical Evidence

On a global scale, ESG criteria have recently attracted attention as crucial focal points in corporate management strategies. This study evaluates the impact of the COVID-19 crisis on the influence of companies’ ESG performance on their financial performance. A comprehensive three-factor ESG model is established to examine both the overall impact and the individual effects of each ESG pillar on the dependent variables. Partial least squares structural equation modeling (PLS-SEM) and multiple regression analysis techniques have been employed utilizing longitudinal data from a sample of 4073 firms operating in G7 countries for the period 2016–2023. The selected study period, 2016–2023, captures the effects of the COVID crisis, encompassing four years prior (2016–2019) and post (2020–2023) the pandemic outbreak. The study outcomes reveal a significant influence of COVID19 on corporations, as the results pre and post crisis exhibited noticeable disparities, particularly in relation to ESG ratings and specific ESG pillars. These results enhance the current body of literature, presenting implications and directing future research initiatives.