Purpose This paper examines environmental, social, and governance (ESG) through the lens of key management theories to understand the issues surrounding ESG disclosure, including incentives and motivation driving disclosure, authenticity of disclosure, greenwashing, extending disclosure practices to supply chains, and standardized reporting. Design/methodology/approach This is a conceptual paper and uses several management theories to elucidate the ESG disclosure complexities and challenges, develop a taxonomy of management theories within the context of ESG, and propose a future research agenda. This methodology allows using the explanatory power of theories, make sense of intricate phenomenon, and consolidates new knowledge. Findings Management theories offer a robust analytical framework for examining the drivers, dynamics, and malpractices related to ESG disclosure. The paper demonstrates how key management theories can deepen our understanding of ESG practices, uncover the root causes of malpractices like greenwashing, and inform strategies to enhance disclosure transparency and accountability. The paper also develops a taxonomy that categorizes management theories into stakeholder-oriented, governance-oriented, implementation-related, and organization-related theories. Finally, the paper develops a comprehensive research agenda, offering targeted directions for future studies on ESG disclosure. Practical implications This paper has both theoretical and practical implications, as it outlines a comprehensive research agenda and provides valuable insights for policymakers and practitioners. The paper discusses implications related to balancing conflicting stakeholder demands, aligning managerial incentives, and integrating technology to reduce transaction costs and enhance efficacy of auditing processes. Originality/value This paper is the first to systematically examine ESG disclosure through the lens of grand management theories. It introduces an original taxonomy of theories applicable to ESG disclosure – a novel contribution that has not been previously developed. By developing a detailed research agenda, the study offers fresh insights into ESG dynamics, addressing deeper theoretical and practical challenges, including greenwashing.
Asif et al. (Tue,) studied this question.