Foundations, Frameworks, and Evolving Paradigms of Environmental, Social and Governance (ESG)
Keywords:
ESG, corporate governance, sustainability reporting, stakeholder theory, socially responsible investment, BRSR, greenwashing, ESG ratingsAbstract
Environmental, Social, and Governance (ESG) criteria have emerged over the past two decades as a dominant framework for evaluating corporate sustainability, stakeholder accountability, and long-term value creation. This foundational paper systematically examines the theoretical origins, definitional evolution, and empirical evidence underpinning ESG as a multidimensional governance construct. Drawing on seminal scholarship in corporate social responsibility (CSR), stakeholder theory, agency theory, and institutional economics, the paper traces ESG's conceptual lineage from early socially responsible investment principles through its institutionalization in global reporting standards and regulatory regimes. It critically interrogates the structure of each pillar, Environmental (E), Social (S), and Governance (G), identifying areas of conceptual strength, measurement ambiguity, and normative contestation. The paper further examines ESG's growing integration into capital markets, highlighting evidence on performance linkages, rating divergence, and greenwashing risks. It concludes by identifying key research frontiers, including the reconceptualization of the social pillar, the challenges of ESG in emerging-market contexts, and the tension between disclosure-based compliance and substantive sustainability outcomes. The paper is intended to serve as a conceptual and bibliographic anchor for scholars entering or deepening engagement with the ESG research domain.
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Published on: 08-05-2026
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