Title: Does ESG performance influence the financial outcomes of fortune 500 companies in India? Empirical evidence

Authors: Stuti Gautam; Hari Prapan Sharma

Addresses: Institute of Business Management, GLA University, Mathura, Uttar Pradesh, 281406, India ' Institute of Business Management, GLA University, Mathura, Uttar Pradesh, 281406, India

Abstract: This study examines the influence of environmental, social, and governance (ESG) performance on financial metrics, specifically return on investment (ROI) and return on equity (ROE), with internal control systems (ICS) serving as a mediating variable. The descriptive and cross-sectional investigation concentrates on Fortune 500 corporations in India. Data were acquired through a survey comprising 23 adapted and modified scale items that evaluate six pivotal variables linked to ESG performance and financial metrics. The sample comprised 566 professionals, including chartered accountants, finance managers, and accountants, who were selected via purposive sampling. The results indicate that environmental, social, and governance scores positively and statistically significantly affect ESG performance. Furthermore, ESG performance significantly impacts ICS, ROI, and ROE. This research emphasises the essential function of effective internal control systems in augmenting the financial outcomes associated with robust ESG performance within Indian Fortune 500 firms.

Keywords: ESG performance; financial outcomes; internal control system; return on investment; ROI: return on equity; ROE.

DOI: 10.1504/IJBSR.2026.150388

International Journal of Business and Systems Research, 2026 Vol.20 No.1, pp.46 - 69

Received: 06 Feb 2025
Accepted: 10 May 2025
Published online: 12 Dec 2025 *

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