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THE ROLE OF CULTURAL FACTORS IN ESG REPORTING.
Abstract
Environmental, social, and governance (ESG) reporting has evolved from a niche practice to a mainstream business priority across the globe. As companies integrate ESG considerations into corporate strategy and disclosure, cultural factors play a significant role in shaping how sustainability commitments are perceived and implemented. National values, norms, and management practices influence corporate sustainability behavior – for example, whether firms view ESG initiatives as ethical imperatives, compliance exercises, or strategic opportunities. This research examines the intersection of ESG reporting and cultural dimensions, focusing on how Hofstede’s cultural dimensions (e.g. power distance, individualism vs. collectivism, uncertainty avoidance, etc.) impacts corporate transparency and sustainability practices. In an increasingly regulated ESG landscape, understanding cross-cultural differences is essential for enterprises operating in international environment to meet stakeholder demands and avoid greenwashing or miscommunication. The paper is devoted to the key ESG frameworks and regulations, identifies current sustainability reporting trends, and analyze how cultural dimensions influence ESG disclosure, culminating in conclusions and practical recommendations for organizations and policymakers.
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References6
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