Assessing the Impact of Environmental, Social and Governance (ESG) Criteria on Corporate Performance and Stakeholder Trust

Abstract

Environmental, Social, as well as Governance (ESG) criteria and their effects on stakeholder trust along with corporate performance are the focus of this research. ESG is quickly becoming a key part for business sustainability. The current challenge is to give trustworthy evaluations of ESG performance that apply to all sectors and regions. Existing techniques often concentrate on particular sectors, regions, or simple binary metrics, which reduces the generalizability and insight depth. This research introduces the Multi- Aspect ESG Performance Integration Algorithm (MEPIA). This is a new approach that combines different ESG measures with financial performance, stakeholder trust, and governance quality to address existing gaps. In order to provide real-time evaluations and improved predictions, MEPIA integrates a dynamic, longitudinal study that monitors ESG performance over time. To validate the algorithm's performance, this research uses SPSS to run statistical tests, regression analysis, and compare the results with conventional ESG grading systems. The study shows that MEPIA significantly improves the accuracy and usefulness of ESG assessments in different sectors and areas. It gives businesses better information to help them meet their sustainability goals.