Environmental, social and governance (ESG) performance: Does it pay back in terms of corporate brand value?

Frame of the research: This study contributes to various research domains of interest such as branding and corporate branding, corporate governance, environmental, social and governance (ESG) and, more generally, sustainability and society well-being. Purpose of the paper: This paper advances hypotheses linking the corporate brand value to ESG performance. Methodology: The study tests hypothesis by applying linear regressions on crosssectional 2021 data, built on the corporate brand value of the world’s top leading brands, whose ESG score has been retrieved from the Refinitiv™ database. In particular, the corporate brand value has been operationalized by means of the Interbrand listing. Results: Findings show a positive relationship between the corporate brand value and the ESG social dimension, whereas the impact of the other ESG dimensions have been found not significant. Moreover, findings shed light on the positive link between the corporate brand value ESG controversies, moderated by the social dimension. Research limitations: This paper is based on a sample retrieved from the 2021 Interbrand listing, with the related 2021 Refinitiv™ data, hence further studies are needed to investigate longitudinal effects stemming from the link between corporate brand value and ESG performance. Managerial implications: Corporate managers should be aware of the specific effects of each ESG factor on the overall brand value. However, in parallel with a more focalized view on ESG dimensions, we also suggest a holistic approach to ESG management and branding by undertaking an inside-out and outside-in approach to infuse ESG dimensions internally and externally. Originality of the paper: This is the first study that links the corporate brand value of top global brands to their ESG performance, highlighting the distinct impact of the social component and controversies.