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Environmental, social and governance (ESG) aspects have garnered considerable attention in corporate management on a global scale in recent times. As a result, researchers have paid notable attention to this subject. Though numerous studies have already explored various aspects of ESG in the context of emerging economies like Bangladesh, there is limited evidence on whether ESG practices promote customer brand perception (CBP). This study measures the impact of ESG on CBP deploying structural equation modeling in an emerging economy by analyzing the responses of 450 samples in accordance with the philosophies of triple bottom line theory and signaling theory. The results indicate that sustainability responsiveness, social and environmental disclosure practices, and CBP are positively impacted. Customers’ enhanced level of sustainability responsiveness strengthens the influence of governance disclosures in choosing a brand, while weakens the impact of environmental and social disclosures. However, the study concludes there is no significant effect of governance disclosures on CBP. The findings also reveal that social issues have the strongest impact on CBP among the ESG parameters. As sustainability concerns increase, customers either demand more sustainability performance from brands or their impression of the brands declines correspondingly. The study outlines a customer’s viewpoint on the requirements of ESG and sustainability concerns, which will contribute organizations to adopt appropriate ESG strategies and address sustainability challenges to win over customers and strengthen their brand image.
Amanullah et al. (Mon,) studied this question.