Work

ESG impact on corporate sustainability: A PLS-SEM analysis from Thailand's evidence

Year: 2025

Type: article

Abstract: Despite growing recognition of Environmental, Social, and Governance (ESG) principles as critical drivers for sustainable business practices, significant research gaps persist regarding how ESG factors specifically influence sustainability performance outcomes in fostering Bio-Circular-Green (BCG) economic models in emerging economies. Empirical research examining ESG-performance relationships supporting the BCG in emerging economies remains limited. This study addresses this gap by investigating which ESG dimensions significantly influence sustainability performance and stakeholder satisfaction in Thailand toward fostering the Bio-Circular-Green (BCG) economic model and achieving the UN Sustainable Development Goals (SDGs). The survey data were obtained from 443 business executives and employees from large and listed companies in the Stock Exchange of Thailand (SET). A proposed research model was derived from the ESG literature. Using Structural Equation Modelling, a resultant ESG sustainable business model was proposed. Findings indicate that good governance and environmental responsibility are the two significantly positive factors that can influence sustainability performance outputs and stakeholder satisfaction in these SET-listed firms. The resulting model highlights these significant ESG factors as the essential drivers for improved sustainability performance and stakeholder satisfaction. The research primarily focuses on large companies, suggesting that caution should be exercised when extrapolating these findings to other contexts. The cross-sectional design captures the current state of ESG and BCG practices, not accounting for changes over time. The study contributes to the literature by examining ESG effects, extending theory beyond conventional economic models, and addressing geographic bias in ESG research.

Source: Social Sciences & Humanities Open

DOI: 10.1016/j.ssaho.2025.101877

Authors: Suparak Suriyankietkaew, Sutthathip Kamthornphiphatthanakul, Monrudee Theeraworawit

Institutions: Mahidol University, Rajapark Institute

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Responsible consumption and production

Open Access status: gold

Estimated APC paid: $1,180