How does entrepreneurship promote corporate ESG performance?

Abstract

Implementing ESG strategies mostly depends on entrepreneurship. The interaction between entrepreneurship and corporate environmental, social, and governance (ESG) performance is examined in this paper. It examines information from A-share listed firms between 2011 and 2022 to understand how entrepreneurship affects business ESG performance. The findings show that encouraging entrepreneurship can effectively improve business ESG performance. Furthermore, good results come from raising general factor productivity, increasing capacity for risk-taking, supporting activities connected to environmentally friendly innovation, and so on. Especially in encouraging major inventions, entrepreneurship is quite successful. Furthermore, the company's ownership and internal control degrees have different mediation effects. Companies with more degrees of internal control capacity and state ownership can intensify the sound of entrepreneurship. This paper confirms the significant impact of entrepreneurship and offers insightful analysis to guide the future development of business ESG activities.