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Manufacturing Agglomeration and Corporate Environmental, Social, and Governance Performance

Year: 2025

Type: article

Abstract: Implementing environmental, social and governance (ESG) disclosure is critical for manufacturers’ sustainable development and high-quality growth. Amid manufacturing agglomeration, firms’ spatial concentration reshapes value creation and risk exposure, affecting ESG performance. Using 2010–2023 data from Chinese A-share listed manufacturers, this study empirically examines agglomeration’s impact on corporate ESG performance, based on heterogeneous firm and stakeholder theories. Results show agglomeration significantly improves ESG performance, via enhanced productivity (internal) and greater compliance pressure (external). Further analysis finds ESG performance mitigates adverse selection in agglomeration ecosystems, while cluster peer effects strengthen long-term ESG engagement, aligning with stakeholders’ demands for transparency and accountability. This enriches manufacturing agglomeration-ESG literature, guiding policymakers and firms in integrating sustainability into clustered development.

Source: Sustainability

DOI: 10.3390/su17209224

Authors: Yujun Ji, Shuang Liang

Institution: Ocean University of China

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $2,896