Unlocking the Path to Sustainability: A Hierarchical Model for Understanding Corporate Barriers to ESG Reporting Adoption

Paridhi, Ritika, Hitesh Arora (), Padmasai Arora and Neha Saini ()
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Paridhi: Department of Management Studies, Shaheed Sukhdev College of Business Studies, University of Delhi, Delhi 110089, India
Ritika: Department of Management Studies, Netaji Subhas University of Technology, Delhi 110078, India
Hitesh Arora: FORE School of Management, New Delhi 110016, India
Padmasai Arora: Keshav Mahavidyalaya, University of Delhi, Delhi 110034, India
Neha Saini: Faculty of Management Studies, University of Delhi, Delhi 110007, India

JRFM, 2024, vol. 17, issue 12, 1-28

Abstract: Environmental, social, and governance (ESG) reporting is a vital force behind the advancement of sustainable corporate practices and goes beyond simple compliance. In order to better understand the elements influencing this process, this study looks at the obstacles that prevent corporations from adopting ESG reporting. Using total interpretive structural modeling (TISM), an empirical model was created to show the hierarchical relationships between the main obstacles found by a literature research and expert survey. We identified barriers at the strategic level, such as resource shortages, unclear stakeholder demand, and structural limits; at the functional level, such as governance issues and cultural resistance; and at the efficiency level, which directly impacted adoption. Matrice d’Impacts Croisés Multiplication Appliquée à un Classement (MICMAC) analysis clarified the driving and dependence relationships among these barriers. The findings contribute to refining theoretical perspectives on ESG adoption and offer practical insights for corporate managers, policymakers, and organizations striving for effective sustainability practices. Recommendations aim to enhance sustainability policy formulation, operational practices, and governance frameworks, ultimately supporting organizations in their efforts to adopt ESG reporting sustainably and resiliently.

Keywords: corporate ESG reporting adoption; ESG disclosures; total interpretative structural modeling (TISM); MICMAC analysis; corporate barriers; sustainable development; sustainable practices (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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