This article assesses the correlation between Environmental, Social, and Governance (ESG) integration and corporate performance, emphasizing the growing significance of ESG factors in modern business practices. It investigates two principal research inquiries: the effect of ESG integration on financial performance and the sector-specific reactions to ESG practices. The article conducts a thorough literature assessment, synthesizing current studies and demonstrating a generally favorable association between strong ESG practices and financial results, including profitability and reduced risks. It underscores the significance of stakeholder involvement as a mediator in this connection and examines the Resource-Based View, which regards ESG practices as important assets for competitive advantage. The results demonstrate that although numerous sectors benefit from ESG integration, the efficacy differs considerably across industries. The article highlights deficiencies in existing research, namely the need for longitudinal and sector-specific studies, and proposes future research avenues to enhance the understanding of ESG practices. Ultimately, it emphasizes the imperative for firms to integrate ESG concepts as a fundamental aspect of their strategies to improve corporate performance and promote sustainable growth.