The Effects of ESG Engagement on Performance of Korean Logistics Firms in the Global Marketplace: Moderating Roles of Government and Investor Pressure

Purpose - We examined how external pressures from stakeholders, such as the government and investors, influence environmental, social, and governance (ESG) practices in logistics firms headquartered in Korea, and whether external pressures moderate the relationship between the practices and nonfinancial performance. Design/Methodology - Data were collected from a Korean logistics firm through surveys. The data were analyzed using multiple regression, focusing on the moderating roles of external pressures between ESG activities and non- financial performance. Findings - From the perspective of international logistics firms, we found a relationship between ESG engagement and non-financial performance and the distinguishable roles of external factors. Unlike previous studies in various industries that have separated external pressures from the government and investors, our study reveals that logistics firms can perceive these pressures as a unified factor. The results of this study indicate that logistics firms may recognize both governmental policy pressures and investor pressures as a single influencing force, which could contribute to shaping their corporate image and would ultimately exert a positive impact on non- financial performance. Originality/value - The findings of our study could guide government policymakers, who should encourage logistics firms to employ ESG management. Specifically, we emphasize the importance of improving non-financial performance through ESG management across all industries, including the maritime and logistics sectors. Firms in Korea should actively implement eco- friendly policies and social responsibility initiatives to meet environmental regulations and investor expectations and ensure long-term success and sustainability. Governments and policymakers should regularly review the effectiveness of environmental regulations and adjust them as necessary to support companies in continuously fulfilling their environmental responsibilities and pursuing long-term success. Moreover, this study provides an industry- specific framework for ESG research.