Disaggregating ESG Mechanisms: The Mediating Role of Stakeholder Pressure in the Financial Performance of Logistics Firms

This research investigates the impact of Environmental, Social, and Governance (ESG) practices on the financial performance of logistics firms, with a focus on the mediating role of stakeholder pressure. Utilizing survey data collected from Korean logistics firms (N = 256 valid responses) and employing structural equation modeling, the findings indicate that social practices exert a significant direct effect on financial outcomes. Conversely, environmental and governance practices impact financial performance indirectly, through stakeholder pressure. These findings suggest that ESG activities impact financial performance via distinct mechanisms, contingent upon the specific ESG dimension and the level of stakeholder engagement. The study advances ESG literature by providing a disaggregated analysis of ESG effectiveness and empirically confirming stakeholder pressure as a critical pathway. Practically, the results underscore the need for logistics firms to align their ESG strategies with stakeholder expectations and institutional pressures, thereby optimizing both sustainability and financial performance.