Purpose: T his study examines h ow external p ressures f rom stakeholders like government, investors, and customers influence ESG practices in shipping firms, and whether ESG activities mediate the relationship between these pressures and company performance. It also assesses the impact of ESG on financial and nonfinancial results. The findings aim to guide governmental policy for ESG promotion and provide an industry-specific ESG research framework. Research design, data, and methodology: Survey data were analyzed with SPSS 22.0 using multiple regression and Baron & Kenny’s method to examine ESG factors as mediators between external pressures and performance outcomes. Results: This study, focusing on domestic shipping companies, sheds light on the relationship between ESG implementation and corporate performance, distinguishing the external factors influencing ESG adoption. Unlike previous research in various industries that separated external pressures from government and investors, this research reveals that companies perceive these pressures as a unified factor. Results indicate that firms recognize both governmental policy pressures and investor pressures as a single influencing force, which contributes to the shaping of their corporate image and ultimately exerts a positive impact on nonfinancial performance outcomes. Implications: The findings of this study suggest that ESG management plays a crucial role in enhancing corporate performance and offer guidance for government policies to promote ESG practices in businesses. Given the current business environment’s emphasis on corporate social responsibility and sustainability, companies can leverage these results to develop more effective sustainable management strategies, integrate ESG considerations deeply into their policies, and pursue long-term success.
Seo et al. (Tue,) studied this question.