Research on the Impact of Corporate ESG Performance on Long-Term Sustainable Competitive Advantage

Abstract

With the deepening of global sustainable development concepts, corporate Environmental, Social, and Governance (ESG) performance has increasingly become a crucial indicator of long-term sustainable competitive advantage. This paper explores how ESG performance impacts corporate competitiveness through mechanisms such as enhancing operational efficiency, increasing brand value, and optimizing risk management, from the perspectives of resource-based theory, stakeholder theory, and risk management theory. By analyzing strategies related to environmental management, social responsibility, and corporate governance, this paper proposes practical paths for improving ESG performance. The study finds that strong ESG performance not only helps reduce capital costs but also significantly enhances a company's market competitive edge. This paper provides strategic recommendations for corporate managers based on the ESG perspective, promoting sustainable development in global competition.