Year: 2025
Type: article
Abstract: With the acceleration of globalization, companies face the dual challenges of ESG (Environmental, Social and Governance) compliance and financial stability in transnational operations. Some companies implement social responsibility standards inconsistently in different countries, resulting in damaged brand image. To this end, this paper studies ESG compliance and financial stability in transnational operations, aiming to optimize the sustainable development path of companies worldwide. This paper analyzes the specific application of ESG concepts in transnational operations. Secondly, the double standards of transnational companies in fulfilling their social responsibilities are studied. From the perspective of corporate culture, how to strengthen internal corporate responsibility awareness through ESG training systems, sustainable development departments, and transparent reporting mechanisms is explored. Subsequently, in terms of transnational operation risk control, measures including ex ante market research, financial risk identification management, and supply chain optimization are proposed to reduce operational uncertainty. This paper analyzes the impact of corporate environmental responsibility fulfillment on international market competitiveness through stakeholder theory, resource-based theory, and reputation theory. The study finds that strengthening ESG compliance management in transnational operations can significantly improve market competitiveness and financial stability. Companies that adopt environmentally friendly technologies can reduce energy costs by 20%-30% within 5 years, while improving resource utilization and reducing waste emissions by 30%-40%.
Author: Yiling Li
Institution: Jiangxi University of Finance and Economics
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4409591310