The Impact of ESG Disclosure on Organizational Performance: Evidence from Emerging Markets
DOI:
https://doi.org/10.31313/rygd4404Keywords:
ESG disclosure, organizational performance, emerging markets, stakeholder theory, institutional theory, sustainability governanceAbstract
Background: Environmental, Social, and Governance (ESG) disclosure has become increasingly important in corporate governance and global capital markets. However, in emerging markets, its effectiveness remains debated due to regulatory fragmentation, governance variability, and uneven enforcement mechanisms.
Purpose: This study aims to examine the impact of ESG disclosure on organizational performance within the institutional context of emerging markets.
Methods: This study employed a qualitative design based on document analysis. Data were obtained from the Scopus database using the keyword “ESG Disclosure on Organizational Performance”, limited to open-access publications from 2018 to 2026. A total of 34 documents, consisting of 33 journal articles and 1 institutional report, were analyzed using qualitative content analysis.
Results: The findings reveal that ESG disclosure functions as a legitimacy-building mechanism that enhances stakeholder engagement, reduces information asymmetry, and strengthens reputational capital. However, the effectiveness of ESG practices depends largely on institutional quality and the maturity of corporate governance systems. The study also shows that ESG disclosure has more meaningful performance implications when ESG principles are integrated into strategic decision-making, risk management, and performance evaluation processes, rather than treated merely as symbolic compliance.
Conclusions: ESG disclosure in emerging markets should not be viewed solely as a reporting requirement, but as a strategic mechanism that can influence organizational legitimacy, stakeholder trust, and long-term competitiveness.
Research Contribution: This study contributes to the ESG-performance literature by providing a qualitative perspective on how institutional constraints shape ESG practices in emerging markets and by emphasizing the strategic role of ESG integration in supporting sustainable organizational performance.
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