<p>Corporate social responsibility and environmental/social/governance topics are becoming more prevalent in business and finance, impacting corporate reputation. In this paper, we investigate the relationship between ESG compliance and corporate reputation in Ibero–American countries, a context in which few studies have investigated this topic compared with other contexts. To study this relationship, 5 corporate listings from 8 Ibero–American countries are examined with ranking analysis and aggregation methods, which are rarely employed in the literature. In the first study, for each country, this paper intersects corporate reputation, talent attraction, and E, S and G pillar rankings. Large intersections between the rankings are achieved, highlighting the methodological consistency of rankings coming from the same source. In the second study, those intersected firms are thoroughly analysed for local particularities: the best positioned firms across all countries generally belong to the food industry and financial sector. Correlations of the individual rankings per country are also performed: corporate reputation is moderately-highly correlated with ESG compliance in all the cases, talent attraction is moderately-highly correlated with ESG compliance in 60% of the cases, and the different ESG individual pillars differ slightly. In the last study, one summarizing list per country is generated via rank aggregation with the linear ordering problem, enabling the summarization of the rankings for simplicity and faster decision-making. Our results are of interest for managers, policymakers and academics. On the theoretical side, we support the idea that ESG compliance positively influences corporate reputation and talent attraction. In practice, we extend those conclusions to the emerging, Ibero–American context.</p>

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ESG and reputation in Ibero–America: Evidence from corporate rankings

  • Iñigo Martin-Melero,
  • Maria Luisa Medrano-Garcia,
  • Felipe Hernandez-Perlines,
  • Raul Gomez-Martinez

摘要

Corporate social responsibility and environmental/social/governance topics are becoming more prevalent in business and finance, impacting corporate reputation. In this paper, we investigate the relationship between ESG compliance and corporate reputation in Ibero–American countries, a context in which few studies have investigated this topic compared with other contexts. To study this relationship, 5 corporate listings from 8 Ibero–American countries are examined with ranking analysis and aggregation methods, which are rarely employed in the literature. In the first study, for each country, this paper intersects corporate reputation, talent attraction, and E, S and G pillar rankings. Large intersections between the rankings are achieved, highlighting the methodological consistency of rankings coming from the same source. In the second study, those intersected firms are thoroughly analysed for local particularities: the best positioned firms across all countries generally belong to the food industry and financial sector. Correlations of the individual rankings per country are also performed: corporate reputation is moderately-highly correlated with ESG compliance in all the cases, talent attraction is moderately-highly correlated with ESG compliance in 60% of the cases, and the different ESG individual pillars differ slightly. In the last study, one summarizing list per country is generated via rank aggregation with the linear ordering problem, enabling the summarization of the rankings for simplicity and faster decision-making. Our results are of interest for managers, policymakers and academics. On the theoretical side, we support the idea that ESG compliance positively influences corporate reputation and talent attraction. In practice, we extend those conclusions to the emerging, Ibero–American context.