Welcome to Francis Academic Press

Academic Journal of Business & Management, 2025, 7(4); doi: 10.25236/AJBM.2025.070418.

The Impact of Corporate ESG Performance on Sustainable Brand Management: Research Progress and Future Directions

Author(s)

Youyou Li1, Youngmi Kim2

Corresponding Author:
Youngmi Kim
Affiliation(s)

1Department of Business Administration, Dongshin University, Naju-si, 58245, South Korea

2Department of Tourism Management, Dongshin University, Naju-si, 58245, South Korea

Abstract

Against the backdrop of the deepening integration of sustainable development principles, corporate brand management is gradually shifting from a traditional market-oriented approach to a responsibility-driven and long-term value-oriented strategy. As a key non-financial indicator assessing corporate environmental, social, and governance (ESG) performance, ESG not only reflects a firm's capacity to fulfill its social responsibilities but also exerts a profound impact on the shaping and management of sustainable brands. This paper systematically reviews the relevant literature, defines the core concepts and theoretical foundations, and explores in depth the mechanisms through which ESG performance contributes to sustainable brand management. It also summarizes the main research progress and emerging trends in the field. Furthermore, the paper identifies existing gaps in the literature, particularly regarding the construction of influence mechanisms, contextual adaptability, and methodological innovation. Based on these observations, the study proposes future research directions, including the deepening of mediating and dynamic mechanisms, expanding research into cross-cultural contexts, and strengthening perspectives related to digital communication and consumer co-creation. This study aims to provide a theoretical framework and pathway guidance for future academic research, as well as practical insights for firms seeking to develop sustainable brand strategies under a responsibility-oriented paradigm.

Keywords

Environmental, Social, and Governance (ESG); ESG performance; sustainable branding; brand management

Cite This Paper

Youyou Li, Youngmi Kim. The Impact of Corporate ESG Performance on Sustainable Brand Management: Research Progress and Future Directions. Academic Journal of Business & Management (2025), Vol. 7, Issue 4: 149-155. https://doi.org/10.25236/AJBM.2025.070418.

References

[1] Andersen P H, Åberg S, Bujac A. Corporate sustainable brand identity work and network embeddedness: Learnings from Better Place (2007-2013)[J]. Industrial Marketing Management, 2023, 115: 526-538.

[2] Wong W C, Batten J A, Mohamed-Arshad S B, et al. Does ESG certification add firm value?[J]. Finance Research Letters, 2021, 39: 101593.

[3] Koh H K, Burnasheva R, Suh Y G. Perceived ESG (environmental, social, governance) and consumers' responses: The mediating role of brand credibility, Brand Image, and perceived quality[J]. Sustainability, 2022, 14(8): 4515.

[4] Gong X, Wang C, Yan Y, et al. What drives sustainable brand awareness: Exploring the cognitive symmetry between brand strategy and consumer brand knowledge[J]. Symmetry, 2020, 12(2): 198.

[5] Nordin S M, Mokhtar N I, Priyadi U, et al. Communicating Sustainable Brand Equity in a High Carbon Footprint and High-Risk Sector: Comparing Malaysia and Indonesia Oil and Gas Industry[J]. Sustainability, 2023, 15(10): 7738.

[6] Sarpong F A, Sappor P, Nyantakyi G, et al. From traditional roots to digital bytes: Can digitalizing ESG improves Ghanaian rural banks' brand equity through stakeholder engagement, and customer loyalty?[J]. Cogent Business & Management, 2023, 10(2): 2232159.

[7] Bian X, Panyagometh A. The influence of perceived ESG and policy incentives on consumers' intention to purchase new energy vehicles: Empirical evidence from China[J]. Innov. Mark, 2023, 19(4): 187-198.

[8] Chou Y L, Chen C Y, Lin T H, et al. The Role of ESG Participation in Sports Sponsorship: Enhancing Consumer Purchase Intention Through Electronic Word of Mouth (eWOM)[J]. Sustainability, 2024, 16(23): 10744.

[9] Wang Y, Cao J, Cai X. The impact of environmental, social and governance performance on brand value: The role of the digitalisation level[J]. South African Journal of Business Management, 2024, 55(1): 4448.

[10] Yu J, Chiriko A Y, Kim S S, et al. ESG management of hotel brands: A management strategy for benefits and performance[J]. International Journal of Hospitality Management, 2025, 125: 103998.

[11] Al-Issa N, Khaki A R, Jreisat A, et al. Impact of environmental, social, governance, and corporate social responsibility factors on firm's marketing expenses and firm value: A panel study of US companies[J]. Cogent Business & Management, 2022, 9(1): 2135214.

[12] Tripopsakul S, Puriwat W. Exploring the relationship between ESG, trust, brand reputation, and brand equity[J]. International Journal of Advanced and Applied Sciences, 2023, 10(10): 71-77.

[13] Nugroho D P D, Hsu Y, Hartauer C, et al. Investigating the interconnection between environmental, social, and governance (ESG), and corporate social responsibility (CSR) strategies: An examination of the influence on consumer behavior[J]. Sustainability, 2024, 16(2): 614.

[14] Kim J, Kang J, Hyun S. Environmental, social, and governance (ESG) and idiosyncratic volatility: The COVID-19 pandemic and its impact on ESG-sensitive industries[J]. Business Ethics, the Environment & Responsibility, 2024, 33(4): 730-745.

[15] Yu H, Ahn M, Han E. Key driver of textile and apparel industry management: fashion brand ESG and brand reputation[J]. Frontiers in Environmental Science, 2023, 11: 1140004.

[16] Chow M Y C, Ho S P S. Investigating the effect of ESG on retail banks' customer equity[J]. Journal of Financial Services Marketing, 2024, 29: 1330-1344.

[17] Puriwat W, Tripopsakul S. From ESG to DESG: The impact of DESG (digital environmental, social, and governance) on customer attitudes and brand equity[J]. Sustainability, 2022, 14(17): 10480.

[18] Sarpong F A, Sappor P, Nyantakyi G, et al. From traditional roots to digital bytes: Can digitalizing ESG improves Ghanaian rural banks' brand equity through stakeholder engagement, and customer loyalty?[J]. Cogent Business & Management, 2023, 10(2): 2232159.