Trust, Social Capital and ESG Performance: An empirical analysis on European Banks

This study explores the determinants of corporate ESG performance, emphasizing the oftenoverlooked role of informal institutions, particularly social trust. While existing research has extensively analyzed internal corporate attributes and formal institutional factors shaping ESG outcomes, the direct impact of social trust remains underexplored. Focusing on European banks, this study posits that social capital significantly enhances ESG performance. By examining the interplay between formal and informal institutions, the research provides actionable insights for policymakers and highlights the importance of integrating social capital into corporate sustainability strategies.