Creating value beyond commercial outcomes: The ESG practices of online marketplaces for sustainable development

The popularity of online marketplaces continues to grow worldwide, and with it comes increased attention to the non-economic value they provide. This study aims to analyze the environmental, social, and governance (ESG) reports and news of 13 online marketplace operators and examine their engagement in ESG practices, considering their characteristics and the social environment. By comparing their practices with the generic ESG framework, the study identifies unique factors and approaches specific to ESG practices in online marketplaces, such as constructing industry ecology, contributing to national current affairs and policies, protecting intellectual property, and focusing on information and network security. The study also finds that market transactions, digital innovation, and participant ecology are three key mechanisms that explain the specificity of ESG practices in online marketplaces. The findings of this study offer an ESG framework that can be applied to online marketplaces. It highlights the importance of considering online marketplaces’ social environment and individual characteristics in developing ESG practices. This study provides insights for online marketplace operators to improve their ESG practices and contributes to a growing body of literature on non-economic value creation in online marketplaces.