THE INTERSECTION OF ESG PRINCIPLES AND CORPORATE PERFORMANCE: INSIGHTS FROM EXISTING RESEARCH

Purpose: To understand how ESG (environmental, social, and governance) practices influence staff involvement and company performance. The study seeks to provide a complete knowledge of the impact of ESG principles on many aspects of organizational performance, as well as recognize gaps in the existing literature and propose future research topics. Design/Methodology: It conducts a comprehensive literature review to investigate the impact of ethical business practices on organizational performance. The study summarizes previous research and provides theoretical frameworks to support the relation between ESG practices and company success. Furthermore, the study investigates the effects of ESG activities on employee involvement, particularly in hybrid workplaces, as well as the link between behaviour at work, sustainability principles, and psychological characteristics such as motivation and engagement. Findings: The report emphasizes the importance of ESG practices for boosting organizational performance, employee loyalty, and company reputation. It demonstrates that, while plenty of study has focused on financial results, there is still a need to investigate the exact processes via which ESG enhances worker engagement and performance. The findings demonstrate that ESG activities have a beneficial impact on staff engagement, especially in hybrid work contexts, and highlight the vital role of sustainability ideals in improving job behaviour and motivation. Practical Implications: The study offers useful information for companies looking to develop effective ESG initiatives. Companies may build more targeted and effective ESG programs if they understand the variables that drive staff engagement and organizational performance. This, in turn, can lead to greater employee dedication, improved organizational performance, and a more solid business reputation. Originality Value: This study covers a significant gap in the literature by examining the particular mechanisms and long-term consequences of ethical business practices on staff loyalty and organizational performance. It provides conceptual frameworks and concrete insights that add to the growing corpus of research on the link between ESG practices and business performance, laying the groundwork for future investigations. Paper Type: Literature Review KEY WORDS: Employment Engagement, Organizational Performance, ESG