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

Author

Listed:
  • Paridhi

    (Department of Management Studies, Shaheed Sukhdev College of Business Studies, University of Delhi, Delhi 110089, India
    Department of Management Studies, Netaji Subhas University of Technology, Delhi 110078, 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)

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.

Suggested Citation

  • Paridhi & Ritika & Hitesh Arora & Padmasai Arora & Neha Saini, 2024. "Unlocking the Path to Sustainability: A Hierarchical Model for Understanding Corporate Barriers to ESG Reporting Adoption," JRFM, MDPI, vol. 17(12), pages 1-28, November.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:12:p:527-:d:1525609
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    References listed on IDEAS

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