Corporate sustainability and brand value: Evidence from Turkiye

Year 2025, Volume: 8 Issue: 3, 656 - 671, 30.09.2025

İlhan Çam , Muhammet Kocaman , Gökhan Özer

https://doi.org/10.35208/ert.1555207

Abstract

Sustainability-oriented business practices are increasingly recognized as vital in the corporate landscape. These practices, grounded in Environmental, Social, and Governance (ESG) criteria, aim to address not only the financial performance of companies but also their societal and environmental impacts. This study examines the influence of ESG practices on brand value, utilizing data from companies listed on Borsa Istanbul, Turkiye. Employing the Driscoll-Kraay robust standard errors panel data method on a sample spanning the years 2011-2021, the findings indicate that enhanced ESG performance significantly elevates brand value. Social categories, particularly those related to labor management, human rights protection, community involvement, and product responsibility, demonstrate a strong positive influence on brand value. Environmental categories, such as efficient resource management and emission reduction, also contribute positively to brand value, though their impact is comparatively less substantial. Governance categories present mixed results; while management performance has a positive effect on brand value, shareholder-centric practices exhibit a negative impact. Additionally, the study also reveals that the impact of ESG practices on brand value is more pronounced in companies that are less profitable, smaller, more leveraged, less liquid, and younger. The results suggest that companies should adapt their ESG strategies based on their particular attributes to optimize the impact on brand value. Further, the study once again underlines the importance of a comprehensive approach towards ESG that maintains a balance between short-term gains and long-term sustainability. Such insights can also provide useful guidance to companies, investors, and policymakers by using ESG practices as an effective tool to enhance brand value and achieve success in the long term.

Keywords

Brand value , corporate sustainability , ESG , environmental sustainability

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