How Competitiveness, Commitment, and Profitability Affect ESG Performance: An Empirical Investigation of Chinese Firms

Abstract The rapidly transforming global economic landscape emphasizes ESG performance integration to enhance corporate profitability and competitiveness. This study investigates concern construct relationship of China’s non-financial companies Shanghai and Shenzhen stock market listed during 2016-2022. Utilizing data from credible sources, including Bloomberg, this research evaluates ESG performance through a comprehensive ESG score and examines its relationship with corporate profitability, and commitment. Hence, study employs robust methods to assess ESG practices impact on corporate outcomes, considering various control variables like return on assets, firm age, financial leverage, ownership concentration etc. The findings suggest that ESG performance positively correlates with enhanced corporate performance, increased market competitiveness, and strengthened corporate commitment, thereby underscoring the importance of sustainable practices in achieving long-term business success. This research also contributing by providing empirical evidence on ESG performance and its impact towards fostering profitability, competiveness and enhance employee commitment.