1. Exploring the relationship among ESG, innovation, and economic and financial performance: evidence from the energy sector.
- Author
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Pinheiro, Alan Bandeira, Panza, Graziela Bizin, Berhorst, Nicolas Lazzaretti, Toaldo, Ana Maria Machado, and Segatto, Andréa Paula
- Abstract
Purpose: This study aims to investigate the effect of innovation on environmental, social and governance (ESG) performance and, consequently, its influence on the economic and financial performance of companies. Design/methodology/approach: A quantitative and descriptive research was carried out based on secondary data from the Refinitiv Eikon
® database, using the panel data regression technique, considering the constructs: innovation, ESG performance and economic and financial performance. Findings: The results showed that companies that tend to invest more financial resources in R&D are more likely to have higher ESG performance. In addition, companies that have higher ESG performance tend to have higher economic and financial performance. Practical implications: Managers may consider investing more resources in R&D to achieve superior ESG performance. They should be aware that ESG is a strategic tool for creating financial and nonfinancial value for the organization. More than the traditional preparation of a financial report, stakeholders demand another type of information: ESG information. Originality/value: The results confirm the basis of Stakeholder Theory, showing that the companies that meet the needs of all stakeholders tend to have greater economic and financial performance. ESG practices can include keeping employees motivated to work, improved corporate image in the eyes of customers, more satisfied suppliers and community and environment aligned with management. Therefore, these ESG initiatives are instrumental in protecting organizational objectives as well as increasing shareholder value. [ABSTRACT FROM AUTHOR]- Published
- 2024
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