The Environment, Society, and Governance Affects Business Performance and Value

Adel Necib, Fatma Farah, Anis Jarboui
International Journal of Finance, Insurance and Risk Management, Volume 16, Issue 2, 28-43, 2026
DOI: 10.35808/ijfirm/460

Abstract:

Purpose: The study employs hierarchical regression analysis, adjusting for business size and age, to evaluate the effect of ESG practices on firm performance and value, based on a sample of non-public manufacturing enterprises in the UK region. Methodology: A representative subset of the target population of 150 non-public manufacturing enterprises in the UK region will be chosen using random sampling, an objective and methodical manner. Findings: The findings show a strong correlation between ESG practices and business value and performance. Corporate performance and value are positively impacted by environmental sustainability measures, social sustainability, and good governance. Originality: By providing practical implications for practitioners and policymakers, as well as insights into the mechanisms via which ESG practices influence organizational results, the study adds to the body of literature. To investigate the long-term impacts and geographical differences in the relationship between ESG practices and firm performance and value, more study options include comparative and longitudinal studies.


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