The Korean Journal of Franchise Management (한국프랜차이즈경영연구)

Korea Society of Franchise Management (한국프랜차이즈경영학회)
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Effects of ESG Management Activities of Food Companies on Corporate Performance

식품기업의 ESG 경영활동이 기업성과에 미치는 영향

  • Seo Young JEONG (Kyung Hee University, College of Hotel & Tourism Management STEP) ;
  • Kyu-Wan CHOI (Kyung Hee University, College of Hotel & Tourism Management STEP)
  • Received : 2023.05.23
  • Accepted : 2023.06.12
  • Published : 2023.06.30
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Abstract

Purpose: Corporate management is under pressure to contribute to social values beyond profit-seeking, and interest in ESG (Environment, Social, Governance) is increasing worldwide. In the recent global climate change crisis and the COVID-19 pandemic, the importance of non-financial values such as ESG is increasing. Therefore, the purpose of this study is to prepare a strategy for future ESG management activities by analyzing the impact of it on corporate performance by food companies. Research design, data and methodology: ESG-related research trends, ESG activities, and corporate performance were analyzed. After that, a regression analysis was conducted to identify the relationship between ESG evaluation grade and corporate performance. Result: ESG management activities measured by ESG scores did not significantly affect the return on assets, one of the variables of corporate performance. However, as a result of setting the return on equity as a dependent variable, ESG management activities have a nonlinear relationship with corporate performance, and ESG management activities have a positive effect on corporate performance when investment in ESG management activities is reasonable. Conclusions: These results show that food companies should engage in an appropriate level of ESG management activities to improve corporate performance.

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References

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