Environmental, social and governance practices: A new perspective from Asian developing countries

The study explores the relationship between corporate social responsibility practice (CSRP), firm performance (FIPE), and environmental, social and governance practice (ESGP) within the context of several developing countries in Asia. Using the Thomson Reuters Eikon database, our focus sample comprised 6927 firms operating in 10 developing Asian countries, namely Indonesia, Israel, Jordan, Malaysia, Pakistan, the Philippines, Saudi Arabia, Thailand, Turkey, and Vietnam. After a thorough screening process, a total of 817 firms were included in the final dataset, covering the years 2019 to 2023, resulting in 4085 firm-year observations. Through the use of maximum likelihood structural equation modeling (ML-SEM), our findings reveal that CSRP and FIPE positively influence ESGP within the Asian context. Additionally, the FIPE variable demonstrates an additional mediating role in the relationship between CSRP and ESGP. Furthermore, carbon emission (CAEM) plays a significant moderating role in the CSRP-ESGP nexus. By focusing on enhancing CSRP, FIPE, and reducing CAEM, both businesses and governments can collaboratively work towards advancing sustainability efforts across the region. Therefore, the paper provides insight in this context using empirical evidence from 10 developing Asian countries.