Over the past two decades, there has been an increased interest in Environmental, Social, and Governance (ESG) practices among micro, small, and medium-sized firms as a means of incorporating sustainability elements. With the increasing understanding of customers on sustainability aspects for producing products and delivering high-quality services, nowadays companies are paying more attention to ESG issues. This study aims to investigate the relationship between Malaysian ESG practices and consumer engagement. An online survey was conducted with 118 customers, and the findings were analysed using the partial least squares structural equation modelling (PLS-SEM) method. The results of the empirical study demonstrated that customer engagement is positively impacted by the governance elements of perceived ESG. Nonetheless, no discernible direct influence was found between the social and environmental aspects of perceived ESG and conceptions associated with brands. This research makes recommendations for future research directions and consequences based on the findings.

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Does Environmental, Social and Governance (ESG) Practices Affect Customer Engagement?

  • Syed Azlan Aljaffree Syed Khadzil,
  • Mohd Rushdan Yasoa’,
  • Siti Fariha Muhamad,
  • Amira Jamil’,
  • Mohamed Ariff Abdul Rahman,
  • Nor Raihana Asmar Mohd Noor

摘要

Over the past two decades, there has been an increased interest in Environmental, Social, and Governance (ESG) practices among micro, small, and medium-sized firms as a means of incorporating sustainability elements. With the increasing understanding of customers on sustainability aspects for producing products and delivering high-quality services, nowadays companies are paying more attention to ESG issues. This study aims to investigate the relationship between Malaysian ESG practices and consumer engagement. An online survey was conducted with 118 customers, and the findings were analysed using the partial least squares structural equation modelling (PLS-SEM) method. The results of the empirical study demonstrated that customer engagement is positively impacted by the governance elements of perceived ESG. Nonetheless, no discernible direct influence was found between the social and environmental aspects of perceived ESG and conceptions associated with brands. This research makes recommendations for future research directions and consequences based on the findings.