The contemporary corporate landscape requires a diverse array of strategies to attain a competitive advantage. In this regard, an important indicator of long-term, sustainable returns of an organization is ESG performance. Businesses and depositors are gradually realizing that sustainability goes beyond corporate social responsibility to become a critical component of long-term resilience and profitability. Automotive companies have increasingly adopted Environmental, Social, and Governance principles in their policies, driven by stakeholders’ heightened awareness of the importance of sustainable and ethical business operations. This study assesses the relationship between ESG elements and the economic aspects of top five automobile companies’ as determined by market capitalization. This study attempts to measure and define the links between these elements using regression models. The grades highlight a clear association between improved ESG integration and increased financial value.

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Impact of Environmental, Social, and Governance Elements on the Financial Performance of Selected Automobile Manufacturers in India

  • Karthik Reddy,
  • M. Chandrakala,
  • R. Prathima

摘要

The contemporary corporate landscape requires a diverse array of strategies to attain a competitive advantage. In this regard, an important indicator of long-term, sustainable returns of an organization is ESG performance. Businesses and depositors are gradually realizing that sustainability goes beyond corporate social responsibility to become a critical component of long-term resilience and profitability. Automotive companies have increasingly adopted Environmental, Social, and Governance principles in their policies, driven by stakeholders’ heightened awareness of the importance of sustainable and ethical business operations. This study assesses the relationship between ESG elements and the economic aspects of top five automobile companies’ as determined by market capitalization. This study attempts to measure and define the links between these elements using regression models. The grades highlight a clear association between improved ESG integration and increased financial value.