Building Trust through ESG: A Study on Consumer Behaviour in Sustainable Fashion

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It examines how corporate image and word-of-mouth (WOM) mediate the relationship between ESG practices and consumer trust, impacting purchase intent. Methods A structured questionnaire was distributed online to 393 participants aware of ESG practices, targeting Generation Z consumers. The survey assessed demographics, ESG awareness, brand image, WOM, and purchasing decisions using a Likert scale across five constructs: ESG Practices, Corporate Image, WOM, Trust, and Purchase Intention. Data were analyzed with Structural Equation Modeling (SEM) in IBM AMOS, following a two-step process: Confirmatory Factor Analysis (CFA) for validation and path analysis for hypothesis testing. Results The findings indicate that ESG practices significantly enhance corporate image and positive WOM, which, in turn, foster consumer trust. Corporate image has a substantial impact on consumer trust (p < .001), while WOM also contributes to trust (p < .001). Trust was found to be a strong predictor of purchase intention, demonstrating the mediating role of corporate image and WOM between ESG practices and purchasing behavior. Conclusions ESG practices are critical in shaping consumer perceptions and fostering loyalty in the fashion sector. By building a trustworthy corporate image and encouraging positive WOM, fashion brands can effectively influence consumer purchasing decisions. This study highlights the competitive advantage of implementing ESG practices, particularly in appealing to Generation Z consumers who value sustainability and ethical business practices. 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F1000Research 2025, 14 :97 ( https://doi.org/10.12688/f1000research.157754.1 ) NOTE: If applicable, it is important to ensure the information in square brackets after the title is included in all citations of this article. Close Copy Citation Details Export Export Citation Sciwheel EndNote Ref. Manager Bibtex ProCite Sente EXPORT Select a format first Track Share ▬ ✚ Research Article Building Trust through ESG: A Study on Consumer Behaviour in Sustainable Fashion [version 1; peer review: 1 approved] Neha Rastogi https://orcid.org/0000-0001-8018-760X 1 , Jitendra Singh 1 , Shagun Tyagi 2 , [...] Vasim Ahmad https://orcid.org/0000-0002-7782-7722 1 , Rakesh Kumar 1,3 , Rajesh Singh https://orcid.org/0000-0002-3164-8905 4 , Ayushi Sharma https://orcid.org/0000-0002-7874-2544 1 , Neeraj Priyadarshi 5 , Bhekisipho Twala 6 Neha Rastogi https://orcid.org/0000-0001-8018-760X 1 , Jitendra Singh 1 , [...] Shagun Tyagi 2 , Vasim Ahmad https://orcid.org/0000-0002-7782-7722 1 , Rakesh Kumar 1,3 , Rajesh Singh https://orcid.org/0000-0002-3164-8905 4 , Ayushi Sharma https://orcid.org/0000-0002-7874-2544 1 , Neeraj Priyadarshi 5 , Bhekisipho Twala 6 PUBLISHED 16 Jan 2025 Author details Author details 1 Uttaranchal Institute of Management, Uttaranchal University, Dehradun, Uttarakhand, 248007, India 2 Graphic Era Deemed to be University, Dehradun, Uttarakhand, 248002, India 3 Department of Management Studies, Graphic Era Deemed to be University, Dehradun, Uttarakhand, India 4 Uttaranchal Institute of Technology, Uttaranchal University, Dehradun, Uttarakhand, 248007, India 5 Department of Electrical Engineering, JIS College of Engineering, Kalyani, West Bengal, 248007, India 6 Digital Transformation Portfolio, Tshwane University of Technology, Pretoria, Gauteng, South Africa Neha Rastogi Roles: Conceptualization, Formal Analysis, Methodology, Writing – Original Draft Preparation Jitendra Singh Roles: Conceptualization, Project Administration Shagun Tyagi Roles: Validation Vasim Ahmad Roles: Data Curation, Visualization Rakesh Kumar Roles: Writing – Review & Editing Rajesh Singh Roles: Investigation Ayushi Sharma Roles: Software Neeraj Priyadarshi Roles: Resources Bhekisipho Twala Roles: Supervision OPEN PEER REVIEW DETAILS REVIEWER STATUS This article is included in the Uttaranchal University gateway. Abstract Background This study explores the influence of Environmental, Social, and Governance (ESG) practices on consumer purchasing decisions in the fashion industry. It examines how corporate image and word-of-mouth (WOM) mediate the relationship between ESG practices and consumer trust, impacting purchase intent. Methods A structured questionnaire was distributed online to 393 participants aware of ESG practices, targeting Generation Z consumers. The survey assessed demographics, ESG awareness, brand image, WOM, and purchasing decisions using a Likert scale across five constructs: ESG Practices, Corporate Image, WOM, Trust, and Purchase Intention. Data were analyzed with Structural Equation Modeling (SEM) in IBM AMOS, following a two-step process: Confirmatory Factor Analysis (CFA) for validation and path analysis for hypothesis testing. Results The findings indicate that ESG practices significantly enhance corporate image and positive WOM, which, in turn, foster consumer trust. Corporate image has a substantial impact on consumer trust (p < .001), while WOM also contributes to trust (p < .001). Trust was found to be a strong predictor of purchase intention, demonstrating the mediating role of corporate image and WOM between ESG practices and purchasing behavior. Conclusions ESG practices are critical in shaping consumer perceptions and fostering loyalty in the fashion sector. By building a trustworthy corporate image and encouraging positive WOM, fashion brands can effectively influence consumer purchasing decisions. This study highlights the competitive advantage of implementing ESG practices, particularly in appealing to Generation Z consumers who value sustainability and ethical business practices. READ ALL READ LESS Keywords Sustainability, ESG, Consumer Behaviour, WOM, Trust, Corporate Image Corresponding Author(s) Vasim Ahmad ( [email protected] ) Rakesh Kumar ( [email protected] ) Close Corresponding authors: Vasim Ahmad, Rakesh Kumar Competing interests: No competing interests were disclosed. Grant information: The author(s) declared that no grants were involved in supporting this work. Copyright: © 2025 Rastogi N et al . This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. How to cite: Rastogi N, Singh J, Tyagi S et al. Building Trust through ESG: A Study on Consumer Behaviour in Sustainable Fashion [version 1; peer review: 1 approved] . F1000Research 2025, 14 :97 ( https://doi.org/10.12688/f1000research.157754.1 ) First published: 16 Jan 2025, 14 :97 ( https://doi.org/10.12688/f1000research.157754.1 ) Latest published: 16 Jan 2025, 14 :97 ( https://doi.org/10.12688/f1000research.157754.1 ) 1. Introduction The growing demand for sustainability and social responsibility highlights the importance of Environmental, Social, and Governance ESG practices worldwide. People’s social responsibility towards the environment, nature, and themselves now influences their decision making while making purchase decisions. It not only influences purchase decisions, but also affects all stakeholders’ decisions regarding whether they are employees of a company or investors. Each stakeholder is now interested in understanding the company’s ESG practices. Based on this, they can make decisions. To achieve sustainability, companies must gain the trust and credibility of their stakeholders. Industries such as the fashion industry have also started incorporating ESG practices in their daily routines. It also helps reduce risk and improve performance. Emphasizing ESG policies attracts and retains customers and uses various communication techniques ( Burton et al., 2017 ). For instance, Puma is a brand that has initiated efforts to encourage universal equality and fair labor practices ( Campaign, C. C., 2004 ). These actions not only improve society but also enhance a company’s positive brand image and offer it a competitive edge in the market ( Alam, S. S., & Islam, K. Z., 2021 ). Therefore, it is imperative to explore ESG practices in the fashion industry and their impact on consumer purchase behavior is absolutely imperative ( Koh et al., 2022 ). In order for companies to lessen environmental footprints and social impacts, they need to abide by ESG practices while also mitigating business risks and building reputations around their brands ( Nirino et al., 2021 ). These include sustainability initiatives, ethical conduct of employees, responsible supply chain management systems, diversity and inclusion policies as well as corporate governance frameworks that ensure compliance with laws ( D’amato, A., Henderson, S., & Florence, S., 2009 ). ESG practices enable organizations to identify environmental or social risks or opportunities that may have financial consequences, subsequently improving the corporate performance of firms and value creation in the long term ( Fulton et al., 2012 ). Levi Strauss & Co. is also a prime example of a sustainability-oriented brand. Levi, the jeans maker, has made a strong commitment to sustainability and implemented several ESG initiatives such as reducing water consumption in denim production and recycling materials in its offerings ( Maratos, A., 2022 ). Furthermore, ESG practices directly influence consumer behaviors while improving their brand reputation and generating positive word-of-mouth. Notably, 90% of consumers trust and remain loyal to businesses that prioritize social and environmental responsibility ( Soclworks.com cited by Maratos, A., 2022 ). This clearly shows how ethical and sustainable business practices are becoming increasingly necessary for customers who see purchasing choices as supporting corporations that share their values. By doing so, they gain increased customer confidence, loyalty to the brand, and market competitiveness ( Hejase et al., 2017 ). Therefore, this study analyzes the mediating role of corporate image and word-of-mouth between ESG practices and consumer purchase decisions in the fashion industry. This study examines how these practices affect consumer behavior to provide a better understanding of their significance within the context of the fashion business and their possible implications on enterprise outcomes. The literature on ESG has mainly concentrated towards the connection between ESG practices and institutions’ financial performance. However, research on customer perceptions and attitudes towards ESG management and marketing is scarce. A conceptual model, research methodology, recommendations for future studies, implications, and comprehensive discussions are presented in this report ( Barić, 2017 ; Ali et al., 2015 ; Roloff, 2008 ; Alsayegh et al., 2020 ; Tarmuji et al., 2016 ; Aharoni, 2015 ; Min and Galle, 2001 ; Dagher and Itani, 2014 ; Rezaee, 2017 ; Shankar et al., 2002 ; Henisz et al., 2019 ; Fulton et al., 2012 ; Lipton, 2020 ; Matos, 2020 ; Hoang, 2018 ; Niinimäki et al., 2020 and Déri, 2013 ). The manuscript is structured to provide a comprehensive analysis of the research topics of ESG, corporate image, word-of-mouth (WOM), and consumer behavior. It begins with a literature review, identifies gaps, and formulates hypotheses. The conceptual model and research methodology outlined the research design, data collection methods, and analytical techniques. The analysis and results section presents the findings, highlighting the mediating roles of corporate image and WOM in the relationship between ESG practices and consumer behavior. The study’s practical consequences for the fashion industry are examined in the Discussion section, which also offers a path for future research on ESG practices in the industry. 1.1 Research gap While the fashion industry is a significant area for environmental, social, and governance (ESG) considerations, the theoretical literature has predominantly connected ESG activity to financial performance. The fashion industry has a long way to go in terms of understanding the consumer-centric impact of ESG. However, the mediating roles of corporate image and word-of-mouth (WOM) on how ESG practices impact consumer behavior have hardly been investigated. This study seeks to address these gaps by providing a holistic examination of how firm image and WOM mediate the ESG relationship between fashion consumers’ purchase choices. The current study contributes to the literature on ESG investment by proposing and testing a conceptual model, which in turn provides a new understanding of how (mediation) ESG practices affect consumer behavior. It would also take into account the varying effects across ESG dimensions, which can provide broader insights into how fashion companies could utilize ESG to enhance their brand image as well as consumers’ loyalty. The paper is divided as follows: a literature review, conceptual model, hypotheses of the research questions proposed, methodology results, and some practical strategies for fashion companies to develop ESG initiatives based on market positioning. 1.2 Contribution of study This study elaborates on how ESG practices influence consumers’ purchasing decisions in fashion companies. This study discusses how the following three specific facets of ESG practices–environmental sustainability, social responsibility, and governance transparency–influence consumer perception and, in turn, their purchase decisions. Additionally, this study examines the role of corporate image as a mediating factor in this relationship and deals with the issue of how a well-managed corporate image can favorably contribute to boosting the positive effect of ESG practices on purchase decisions. Furthermore, it shows how word-of-mouth influences consumer behavioral aspects concerning the impact of ESG practices on consumer-to-consumer communication and brand loyalty. This research provides practical insights into how fashion firms can effectively implement and communicate ESG practices to enhance corporate image, develop positive WOM, and ensure consumer loyalty and sustainable business outcomes. 2. Literature review and hypothesis development This study focuses on the relationship between various variables such as ESG practices by companies, WOM spread by consumers, their trust, corporate image, and purchase decisions based on ESG practices, corporate image, WOM, and trust, specifically in the fashion industry. ESG practices are one of the important parameters considered by all stakeholders of a company for decision-making, from consumers to employees, and even investors are interested in knowing the ESG score or ESG practices of the company. WOM can improve ESG practices in the digital age by increasing consumers’ confidence. Trust is essential when making decisions, particularly in ethical and environmental sectors. ESG policies and a positive company image result in loyal customer support. 2.1 ESG Environmental, social, and governance (ESG) refers to a broad range of activities including sustainable development, social impact, ethical standards, green practices, and purpose alignment ( Gasperini, 2020 ; Sandberg et al., 2009 ; Zumente & Bistrova, 2021 ). The term ‘perceived ESG’ describes how well a company complies with social and stakeholder duties. Nonetheless, there is still knowledge on how ESG-related activities affect consumer purchasing as well as corporate revenue and profit ( La Torre, Leo, & Panetta, 2021 ). The analysis revealed a significant decrease in the sales of products associated with ESG scandals, indicating that consumers consider ESG issues in their purchasing decisions ( Cornell, B., & Damodaran, A., 2020 ). Reputation signals such as Corporate Social Responsibility (CSR) and sustainability efforts play a crucial role in building corporate brand performance and brand equity ( Wang, S. et al., 2021 ). 2.2 ESG and fashion industry Methods This study used a descriptive survey research approach to examine the purchase decisions made by Generation Z regarding sustainable fashion and ESG practices. A total of 393 participants were selected through convenience sampling, and the data were collected through an online survey. The survey link was distributed via various social media platforms to ensure wide coverage. The participants were eligible to respond if they were aware of ESG concepts. Data collection The questionnaire was structured to capture respondents’ demographics, ESG awareness, brand image, word-of-mouth, and purchase decisions. It included 26 items across five key constructs: ESG Practices, Corporate Image, Word of Mouth (WOM), Trust, and Purchase Intention. Responses were measured on a Likert scale, with participants rating their agreement with each statement. Data cleaning Before analysis, responses were cleaned to remove outliers, incomplete data, and any entries that did not meet the inclusion criteria. Only complete responses from eligible participants were analyzed. Statistical analysis Data were analyzed using Structural Equation Modeling (SEM) with IBM AMOS software, following a two-step approach. In the first step, Confirmatory Factor Analysis (CFA) was conducted to validate the measurement model using key indicators like CFI, GFI, AGFI, NFI, and RMSEA. In the second step, path analysis was performed to test the hypotheses, applying the same fitness criteria. Descriptive statistics were also generated to examine the distribution of demographic data. Reporting guidelines This study complies with the STROBE (Strengthening the Reporting of Observational Studies in Epidemiology) checklist, ensuring adherence to established guidelines for transparency and reproducibility in survey-based research. The full checklist can be accessed on the EQUATOR network website at https://www.equator-network.org/reporting-guidelines/strobe/ ESG considerations are crucial for the fashion industry because of their wide-ranging impacts on various stakeholders and the sustainability of the industry ( Gadinis, S., & Miazad, A., 2020 ). Firstly, investors increasingly scrutinize ESG performance, demanding higher returns for firms with robust ESG practices ( Reber, B., Gold, A., & Gold, S., 2022 ). As sustainability becomes a key criterion for consumer purchasing decisions, companies in the fashion industry need to align with ESG standards to maintain investor confidence and market competitiveness ( Silvennoinen, M.2022 ). Employees, a vital component of the fashion workforce, actively seek employers who prioritize ESG issues ( Strine Jr, L. E., Smith, K. M., & Steel, R. S., 2020 ). The industry’s reliance on skilled and creative professionals makes it imperative for fashion businesses to invest in ESG initiatives to attract, retain, and motivate talent ( Savitz, A., 2013 ). Positive workplace practices, aligned with ESG principles, not only enhance the industry’s social responsibility, but also contribute to increased employee productivity and satisfaction ( Asrar-ul-Haq et al., 2017 ). Suppliers with low ESG ratings face contractual challenges and reduce corporate customer engagement, emphasizing the need for an ESG focus throughout the industry ( Odell, J., & Ali, U., 2016 ). The fashion industry’s environmental and social impacts are significant, making embracing environmental, social, and governance (ESG) practices pivotal in addressing concerns related to resource exploitation, environmental harm, and unsustainable practices. The industry, often criticized for contributing to pollution, waste, and unethical labor practices, can use ESG frameworks to guide responsible business conduct ( Singhania & Saini, 2022 ). The industry’s heavy reliance on natural resources and complex global supply chains underscore the importance of adopting sustainable practices ( Cammarano et al., 2022 ). Implementing ESG considerations provides a structured approach for the industry to address these challenges by fostering transparency, accountability, and responsible resource management ( Veenstra & Ellemers, 2020 ). Furthermore, the textile and clothing industry is seeing a transfer of consumer attention towards sustainable (and ethically produced) fashion ( Lundblad & Davies, 2016 ). Fashion companies must incorporate ESG practices in their operations to cater better towards consumers with new needs, demands, and expectations, as well as to avoid losing brand reputation ( Erhun, F., Kraft, T. & Wijnsma, S. 2021 ). Failure to do so risks staining your reputation, decreasing consumer trust, and even market share. While consumers and other stakeholders have been driving the push for ESG in fashion, it is not just an obligation from those expectations that need to be met; it is also a strategic imperative. In order to position themselves for a more sustainable future, embracing ESG principles will not only ensure fashion is aligned with global sustainability goals, but also mitigate risks and help strengthen brand reputation in an increasingly aware marketplace ( Kandpal et al., 2024 ). 2.3 ESG and corporate image The current trend in the literature is to investigate corporate reputation ( Almeida, M. D. G. M. C. & Coelho, A. F. M., 2019 ; Gomez-Trujillo et al., 2020 ) given that it has become increasingly important and that organizations must identify what determines corporate reputation. Corporate image and reputation are critical signals for companies; however, their impact on product brand equity is often overlooked ( Heinberg, M., Ozkaya, H. E., & Taube, M., 2018 ). The study examines consumer foot traffic in response to negative environmental, social, and governance (ESG) news ( Dube, S., Lee, H. S. G., & Wang, D., 2023 ). The results of previous studies suggest consumers’ willingness to support sustainable and ESG-conscious products, but actual shopping behavior is influenced by factors such as brand loyalty, convenience, and affordability ( Swedroe, L. E., & Adams, S. C., 2022 ; Dube, S., Lee, H. S. G., & Wang, D., 2023 ). This study suggests that there are no significant changes in consumer foot traffic around negative ESG news events ( LI, F. W., & MICHAELY. R., 2023 ; Noh, S., So, E. C., & Zhu, C., 2023 ). However, in countries with higher income, education level, democratic political tendencies, and population density, consumer foot traffic decreases for firms with negative ESG news. Consumer loyalty moderates this effect, indicating that loyal consumers are less likely to change their shopping behavior in response to negative ESG news ( Huo et al., 2022 ). This study contributes to the literature by examining consumer reactions to negative ESG news events and shedding light on the nuanced factors that influence shopping behavior ( Dai, R., Liang, H., & Ng, L., 2021 ). 2.4 ESG and word of mouth Prior studies have examined the relationship between perceived Environmental, Social, and Governance (ESG), sustainability, word-of-mouth (WOM), and intention ( Vo, T. T., Xiao, X., & Ho, S. Y., 2019 ; Puriwat, W., & Tripopsakul, S., 2022 ; Bae, G. K., Lee, S. M., & Luan, B. K., 2023 ). The results show that consumers’ WOM intention is positively affected by eco-friendly service quality in golf resorts and acceptable CSR activities ( Bae, G. K et al., 2023 ). Chae et al. (2015) highlights the significant impact of trust and brand emotion on word-of-mouth promotion and brand loyalty on mobile Social Networking Services (SNS), underscoring the importance of brand trust. 2.5 ESG factor and purchase decision Consumer choices directly impact a firm’s revenues, and in the context of Environmental, Social, and Governance (ESG) performance, consumers may avoid or boycott companies perceived as socially or environmentally irresponsible ( Yu, E. P. Y., Van Luu, B., & Chen, C. H., 2020 ; Choi, J., Roh, T., & Lee, J. H., 2024 ). Research shows evidence of ESG activities, particularly charitable contributions, being linked to revenue growth, but not all governance-related activities elicit similar consumer responses ( Taliento, M., Favino, C., & Netti, A., 2019 ). Ethical considerations are increasingly being considered in purchasing decisions, with various practices impacting consumer behavior, including environmental responsibility, fair labor practices, social responsibility, and transparency in business practices ( Bhaduri, G., & Ha-Brookshire, J. E., 2011 ). Brand loyalty is a key aspect of customer relationships and is positively influenced by ethical practices such as ethical advertising, pricing, and overall ethical behavior ( Román, S., 2003 ). Trust in a brand plays a crucial role in developing brand loyalty, and sustainable marketing fosters loyalty and repeat business ( Filo, K., Funk, D. C., & Alexandris, K., 2008 ). 2.6 Impact of corporate image, WOM, trust on purchase decision Government and non-government organizations, along with community groups, play significant roles as stakeholders in corporate reputation ( Barrett, M., 2001 ; Barić, A., 2017 ). Primary and secondary stakeholders exhibit distinct attributes and levels of involvement within an organization, often influencing the organization’s reputation in different ways ( Fassin, Y., 2009 ). These differences in stakeholder characteristics moderate the association between corporate reputation and its antecedents and consequences, impacting the organization’s image and the effectiveness of its ESG practices ( Ali, R., Lynch, R., Melewar, T. C., & Jin, Z., 2015 ). The way stakeholders perceive an organization’s attributes varies significantly across groups, influenced by their experiences and access to information ( Rindova, V. P et al., 2005 ). Groups with greater access, such as market analysts and senior management, often have differing attitudes and behaviors compared to other stakeholder groups ( Morsing, M., & Schultz, M., 2006 ). Corporate reputation is shaped by these varied perceptions of its foundational qualities and expected outcomes, as each group interprets and values these elements differently ( Ali, R., Lynch, R., Melewar, T. C., & Jin, Z., 2015 ). This study underscores the necessity of accurately assessing corporate reputation to support effective management and convey its value within the organization ( Van Riel and Fombrun, 2007 ). Building stakeholder trust requires companies to consistently demonstrate competence, integrity, and accountability—delivering on promises, showcasing expertise, maintaining transparency, and owning up to decisions ( Maio, E., 2003 ). This study highlights gaps in the literature regarding the relationship between ESG practices and consumer behavior in the fashion sector. This highlights the need for a dynamic study of ESG initiative changes over time and a micro-level examination of customer reactions. The article also discusses consumer preferences towards sustainable and ethically created clothes, but lacks detail on the role of education in raising awareness. It also discusses cross-cultural differences in brand trust and the interactive impacts of image, word of mouth, and trust on purchasing decisions. Hypothesis developed H1: ESG practices of a company has positive influence on Corporate Image H2: ESG practices of a company has positive influence on Word of Mouth H3: Corporate image influence trust of consumer H4: Word of Mouth influence trust of consumer H5: Trust has positive influence on purchase decision of consumer See Figure 1 . Figure 1. Hypothesized relationships between ESG practices, corporate image, word-of-mouth, trust, and consumer purchasing decisions in the fashion industry. This study examines the relationship between consumer trust; word-of-mouth (WOM); company image; and environmental, social, and governance (ESG) activities in fashion businesses. ESG policies, such as social responsibility and sustainability, improve a company’s reputation. Strong ESG practices generate positive word-of-mouth, which increases the effects of ESG activities. Purchase decisions are strongly influenced by consumer trust, which lowers perceived risks and boosts confidence in encouraging actual purchasing behavior. Method This study used a descriptive survey research approach to examine the purchase decisions made by Generation Z regarding sustainable fashion and ESG practices ( Lamm, A. J., & Lamm, K. W., 2019 ). A total of 393 people participated online in the convenience sampling process used to select the sample. Data were collected through an online survey, as this link was shared on different social media platforms, so that responses could be collected by covering a large area. There is only one criterion that respondents need to qualify: if they are aware of ESG and concepts related to ESG, they are eligible to fill out the questionnaire. Along with providing detailed insights into customer preferences and impressions, the questionnaire included quantitative questions. Descriptive statistics were used to analyze the data with a focus on ethics. The study focused on demographic data, awareness, and brand image to better understand customer trust and buying decisions in sustainable fashion. Before analysis, data were removed through a cleaning process in which outliers, data with missing values, and incomplete information were removed. Responses from these respondents were included in the study for analysis purposes that fulfilled the basic criteria and provided complete information. The data were analyzed using Structural Equation Modeling (SEM ) , following a two-step process. First, a Confirmatory Factor Analysis (CFA) was conducted to validate the measurement model. The model’s fitness was evaluated using standard indicators such as CFI , GFI , AGFI , NFI , and RMSEA . In the second step, path analysis was performed to test the hypothesized relationships between variables. Limitations of the study include convenience sampling, potentially affecting the generalizability of findings to the broader population, and the cross-sectional nature of the study, potentially overlooking changes in attitudes and behaviors over time. Future research should incorporate longitudinal and comparative studies to address these limitations. 3. Results This study employed a tailor-made questionnaire in alignment with the aims and objectives of the research. This study used a framework with 26 items, including five main variables: ESG Practice, Corporate Image, Word of Mouth, Trust, and Purchase Intention (refer to Table 1 for detailed constructs and items). ESG Practice measures businesses’ application of Environmental, Social, and Governance practices, while Corporate Image measures a company’s reputation by stakeholders, including perceived quality, corporate citizenship, and brand reputation. WOM: Word of Mouth is about how much people speak (positively and negatively) relative to a business, its products, or services. It includes five questions to evaluate how likely people are to say or talk about the business itself or their products. A purchase goal means that a person intends to buy goods or services in the business. It consists of five measures that measure respondents’ propensity to purchase from a firm according to how they view the company’s corporate image, trust, and ESG policies. Comprehensive analysis and interpretation of the study findings are made possible by a structured technique that allows researchers to systematically analyze respondents’ views, attitudes, and behaviors related to ESG practices, business image, word-of-mouth, trust, and purchasing decisions. Table 1. Constructs and Items Used in the Questionnaire. Construct Items References ESG Practice Environmental sustainability is a key factor in my purchase decisions Indriani, I. A. D., Rahayu, M., & Hadiwidjojo, D. (2019) I actively seek ESG information before deciding to purchase I prefer companies committed to social responsibility when making purchases I'm willing to pay more for products aligned with my ESG values Ethical business practices strongly influence my buying choices Corporate Image The corporate image of significantly impacts my trust in its products/services. Abd-El-Salam, E. M., Shawky, A. Y., & El-Nahas, T. (2013) corporate image reflects a trustworthy and reliable business. The corporate image of strongly influences my confidence in the company The perceived corporate image of aligns with my expectations for a trustworthy brand. My trust is notably influenced by company’s corporate image. Word of Mouth Positive word-of-mouth influences my purchases. Bae, G. K., Lee, S. M., & Luan, B. K (2023) Trust in a brand, fuelled by word-of-mouth, impacts my purchases. Trust gained through recommendations guides my decisions. I prioritize products with a strong word-of-mouth reputation for trust. Recommendations from trusted sources shape my choices. Trust Trust is a critical factor influencing my purchasing decisions. Guerreiro, J., & Pacheco, M. (2021) Trustworthiness is a key consideration when deciding on a purchase. The level of trust I have in a brand significantly impacts my choices at the point of purchase. I am more likely to choose products or services from brands I trust. Building trust with a company enhances my confidence in making buying decisions. Purchase Decision I weigh product/service value and benefits before deciding to buy. ( Bustinza, O. F., Gomes et al., 2019 ), Berger, J. (2014) Trust and reliability of a brand impact my purchase choices. Brand reputation strongly influences my purchase decisions. I assess product/service alignment with my needs before making a purchase decision. Positive word-of-mouth is a key factor in shaping my choices. The sample’s demographic distribution shows that the respondents were a diverse group, with the majority being female (60%) and male (39%). With 31% of the sample, the age group of 34 and above constituted the largest portion. “The demographic profile of the respondents is summarized in Table 2 , showing that the majority were female (60%) and held graduate-level education qualifications (46%). The age range of 23 to 27 years was second, with 24 percent. The age group of 28–33 years was second, with 23 percent. The youngest age group, 18–22 years, comprised 22% of the total. Of the sample, 46% had a graduate-level education. This was the case for the majority of participants. Of the sample, 35% had a postgraduate education and 22% had less than an undergraduate degree. The data demonstrate the diversity of the sample, with a greater percentage of women, a notable representation of older age groups, and the majority possessing at least graduate-level education. Table 2. Demographic Profile. Item Description Sample Percentage Gender Male 366 39% Female 569 60% Other 06 .6% Age 18-22 204 22% 23-27 223 24% 28-33 220 23% 34 and above 294 31% Education Below undergraduate 204 22% Graduate 431 46% Post graduate 306 35% 3.1 Assessment of the measurement model Data were analyzed using Structural Equation Modeling (SEM) techniques, following a two-step approach. The first step involved Confirmatory Factor Analysis (CFA) to validate the measurement model. Model fitness was evaluated using indices like CFI, GFI, AGFI, NFI, and RMSEA. The second step involved path analysis to examine the hypothesized relationships among variables. As indicated in Table 3 , calculations were performed to determine the loadings, maximum H reliability, and maximum number of variables extracted to evaluate convergent validity. To assess the dependability of the equation modelling procedure, composite reliability (CR) is crucial. Using AMOS and SPSS, the researchers tested structural equation models and provided descriptive data on the indicators. Table 3. Composite Reliability and Average Variance Extracted (AVE). Factors Items Standardized Regression Weights (factor loadings) Squared multiple correlation (SMC) Average Variance Extracted (AVE) Composite Reliability ESG ESG1 0.790 0.625 .642 .90 ESG2 0.816 0.666 ESG3 0.800 0.64 ESG4 0.804 0.646 ESG5 0.797 0.636 Corporate Image CI1 0.904 0.818 .687 .916 CI5 0.855 0.734 CI3 0.794 0.631 CI4 0.722 0.522 CI2 0.857 0.731 Word Of Mouth WOM4 0.951 0.814 .970 .866 WOM2 0.944 0.892 WOM3 0.927 0.859 WOM5 0.929 0.904 WOM1 0.902 0.864 Trust T2 0.834 0.711 .754 .939 T1 0.843 0.696 T3 0.829 0.687 T4 0.891 0.794 T5 0.939 0.881 Purchase Decision PD1 0.864 0.746 .924 .709 PD4 0.872 0.654 PD5 0.842 0.674 PD2 0.809 0.760 PD3 0.821 0.709 Following the guidelines from Hair et al. (1998) , a Cronbach’s alpha value greater than 0.7 is considered indicative of strong internal consistency. Both convergent and discriminant validity were rigorously assessed. Convergent validity was confirmed through factor loadings and the calculation of Average Variance Extracted (AVE). Each construct displayed factor loadings above 0.6, indicating sufficient convergence among latent variables ( Chin et al., 1997 ). The AVE values ranged from 0.5 upwards, meeting the minimum threshold required for establishing convergent validity. Discriminant validity was verified using the Fornell and Larcker (1981) approach, ensuring that the squared multiple correlations (SMC) for each construct were below the AVE values. Additionally, the AVE values surpassed the minimum benchmark of 0.3, as suggested by Bagozzi and Yi (1988), thereby confirming the robustness of the measurement model’s validity and reliability. The results in Table 4 show that the corporate image of a company has a significant and positive relationship with the ESG Practice of a company with a p-value of ***. Similarly, WOM also has a positive and significant relationship with ESG practices. Trust also has a significant relationship with corporate image, revealing that a company’s corporate image helps build trust in their respective consumers. Similarly, positive word of mouth also plays a vital role in building consumers’ trust in making their purchase decisions ( Bae et al., 2023 ; Zumente & Bistrova, 2021 ; Eccles et al., 2020 ; Sargentini, 2023 ; Dube et al., 2023 ). Table 4. Structural model regression weights. Regression weights: (Group number 1 - Default model) Estimate S.E. C.R. P Label Corporate image <--- ESG .527 .032 16.258 *** par_22 Word of Mouth <--- ESG .276 .040 6.907 *** par_23 Trust <--- Corporate image .406 .038 10.612 *** par_20 Trust <--- Word of Mouth .098 .025 3.942 *** par_21 Purchased <--- Trust .242 .038 6.388 *** par_19 Table 5 represents the regression weights; it was found that corporate image is the most influenced by the ESG practices of the company. There is also a strong and positive association between corporate image and consumer trust. This reveals that a more positive image of a company leads to trust in their respective consumers ( Figure 2 ). Table 5. Standardized regression weights and relationships among constructs. Standardized regression weights: (Group number 1 - Default model) Estimate Direction Corporate image <--- ESG .627 Positive Word of Mouth <--- ESG .238 Positive Trust <--- Corporate image .376 Positive Trust <--- Word of Mouth .125 Positive Purchased <--- Trust .221 Positive Figure 2. SEM Model showing relationships among key constructs. 4. Discussion This study examines how Environmental, Social, and Governance (ESG) practices affect a business’s reputation, customer recommendations, consumer confidence, and buying decisions. Environmental, social, and governance (ESG) practices are business attempts to conduct business in a way that is morally and sustainably acceptable while also improving their standing with stakeholders, competitive advantage, and risk management. They draw clients, set businesses apart from their rivals, and handle social and environmental challenges. Building consumer trust requires both word-of-mouth (WOM) and strong business image. A brand that is well received by customers is enhanced by moral conduct, superior merchandise, and conscientious business methods. Positive evaluations and recommendations spread through word-of-mouth strengthen trust, which in turn affects purchasing decisions by reducing perceived risks and increasing confidence in the company and its products. 5. Conclusion This study investigates how customer behavior in the fashion business is affected by environmental, social, and governance (ESG) practices. ESG practices are becoming more prevalent in the fashion industry because of the growing demand for sustainability and social responsibility. Brands such as Puma, Levi Strauss, and Levi have introduced’s with the aim of drawing customers, enhancing their brand image, and creating positive word-of-mouth. This study examines how word-of-mouth and corporate image influence consumer purchasing decisions and ESG practices. It offers information on how fashion brands may use ESG to improve their reputations, generate goodwill among customers, and maintain customer loyalty. They conclude that purchasing decisions, company reputation, and image are all positively impacted by ESG metrics. This study highlights the importance of quality control, social responsibility, and sustainability in the fashion industry. This implies that businesses can improve their standing, cultivate clientele, and boost their revenue by embracing sustainability and accountability. The results are applicable to several businesses and pertinent to the current economic environment. 6. Limitation and future scope of study This study examined the influence of several variables on sustainable fashion consumption. While these variables have been previously identified as important factors in promoting sustainability, there is a need for further research that examines how they interact in the context of sustainable fashion consumption and whether they remain relevant in the current socio-economic and environmental climate. Additionally, there may be other variables that have not yet been fully explored in relation to sustainable fashion consumption, such as the influence of government policies, regulatory frameworks, and the role of social media in promoting sustainable fashion. Therefore, more research is needed to identify these variables and their impacts on sustainable fashion consumption. By exploring these research gaps, future studies can contribute to a more comprehensive understanding of the factors that drive sustainable fashion consumption, and the role of various stakeholders in promoting sustainability in the fashion industry. This research can help to identify new strategies to enhance sustainable fashion practices and create a more sustainable future. Ethics and consent This study was conducted in accordance with the ethical standards set out in the Declaration of Helsinki for research involving human participants. Ethical approval for this study was granted by the Uttaranchal University Research Ethics Board (REB). The ethics approval number for this study is UU/DRI/EC/2024/008, issued on 30th September 2024. A formal approval letter was issued in a retrospective manner. In July 2024, we obtained verbal permission from the REB to commence our study as written approval was provided only when requested by a journal. The REB reviewed our comprehensive application and confirmed that we met all ethical norms and regulations before granting preliminary verbal consent. Consequently, we initiated our investigation in good faith and fully aligned it with the ethical standards outlined in the preliminary review. The Data were submitted to the REB of the university, where board members and the chairperson assessed the viability of the research. After all the members were presented, their research objectives were approved for conducting the study. Consent statement All the study participants provided written informed consent. A self-explanatory written statement was included for the participants and submitted to the university research board. Data availability Underlying data Figshare: Building Trust through ESG, Doi: https://doi.org/10.6084/m9.figshare.27193236.v2 ( Ahmad, V. 2024 ). This project contains the following underlying data: • Building Trust through ESG.xlsx Extended data Fidshare: Building Trust through ESG, Doi: https://doi.org/10.6084/m9.figshare.27193236.v2 ( Ahmad, V. 2024 ). This project contains the following extended data: • Questionnaire on ESG-11-14-2024_12_32_AM.pdf Questionnaire: The structured questionnaire used for data collection can be accessed via this link: Questionnaire Link. https://docs.google.com/forms/d/e/1FAIpQLSfbAeVuABsjFdPCrXg1l-HD4FenPyhVd7qBvhnQ1GJ5_iOmQA/viewform?usp=sf_link This questionnaire includes questions on demographics, ESG awareness, corporate image, word-of-mouth, and purchase decisions, which were all measured on a Likert scale. Consent Form: There was no separate consent form required. Participants provided their consent directly through the questionnaire. Data are available under the terms of the Creative Commons Zero “No rights reserved” data waiver (CC0). 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Publisher Full Text Comments on this article Comments (0) Version 1 VERSION 1 PUBLISHED 16 Jan 2025 ADD YOUR COMMENT Comment Author details Author details 1 Uttaranchal Institute of Management, Uttaranchal University, Dehradun, Uttarakhand, 248007, India 2 Graphic Era Deemed to be University, Dehradun, Uttarakhand, 248002, India 3 Department of Management Studies, Graphic Era Deemed to be University, Dehradun, Uttarakhand, India 4 Uttaranchal Institute of Technology, Uttaranchal University, Dehradun, Uttarakhand, 248007, India 5 Department of Electrical Engineering, JIS College of Engineering, Kalyani, West Bengal, 248007, India 6 Digital Transformation Portfolio, Tshwane University of Technology, Pretoria, Gauteng, South Africa Neha Rastogi Roles: Conceptualization, Formal Analysis, Methodology, Writing – Original Draft Preparation Jitendra Singh Roles: Conceptualization, Project Administration Shagun Tyagi Roles: Validation Vasim Ahmad Roles: Data Curation, Visualization Rakesh Kumar Roles: Writing – Review & Editing Rajesh Singh Roles: Investigation Ayushi Sharma Roles: Software Neeraj Priyadarshi Roles: Resources Bhekisipho Twala Roles: Supervision Competing interests No competing interests were disclosed. Grant information The author(s) declared that no grants were involved in supporting this work. Article Versions (1) version 1 Published: 16 Jan 2025, 14:97 https://doi.org/10.12688/f1000research.157754.1 Copyright © 2025 Rastogi N et al . This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Download Export To Sciwheel Bibtex EndNote ProCite Ref. Manager (RIS) Sente metrics Views Downloads F1000Research - - PubMed Central info_outline Data from PMC are received and updated monthly. - - Citations open_in_new 0 open_in_new 0 open_in_new SEE MORE DETAILS CITE how to cite this article Rastogi N, Singh J, Tyagi S et al. Building Trust through ESG: A Study on Consumer Behaviour in Sustainable Fashion [version 1; peer review: 1 approved] . F1000Research 2025, 14 :97 ( https://doi.org/10.12688/f1000research.157754.1 ) NOTE: If applicable, it is important to ensure the information in square brackets after the title is included in all citations of this article. COPY CITATION DETAILS track receive updates on this article Track an article to receive email alerts on any updates to this article. TRACK THIS ARTICLE Share Open Peer Review Current Reviewer Status: ? Key to Reviewer Statuses VIEW HIDE Approved The paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. Not approved Fundamental flaws in the paper seriously undermine the findings and conclusions Version 1 VERSION 1 PUBLISHED 16 Jan 2025 Views 0 Cite How to cite this report: Jaiswal DJ. Reviewer Report For: Building Trust through ESG: A Study on Consumer Behaviour in Sustainable Fashion [version 1; peer review: 1 approved] . F1000Research 2025, 14 :97 ( https://doi.org/10.5256/f1000research.173250.r361566 ) The direct URL for this report is: https://f1000research.com/articles/14-97/v1#referee-response-361566 NOTE: it is important to ensure the information in square brackets after the title is included in this citation. Close Copy Citation Details Reviewer Report 27 Jan 2025 Dr Jagriti Jaiswal , IILM University, Gurugram, Haryana, India Approved VIEWS 0 https://doi.org/10.5256/f1000research.173250.r361566 While the paper makes a valuable contribution, there are a few areas where improvements could enhance its clarity, impact, and practical applicability. Key Points for Revision are mentioned below :- 1. Abstract: The abstract is clear but would benefit ... Continue reading READ ALL While the paper makes a valuable contribution, there are a few areas where improvements could enhance its clarity, impact, and practical applicability. Key Points for Revision are mentioned below :- 1. Abstract: The abstract is clear but would benefit from Mentioning the practical implications of the study briefly to attract the reader's attention. 2. Introduction: Strengthen the rationale for focusing on the fashion industry by elaborating on its environmental and ethical challenges (e.g., fast fashion's environmental impact). Explain why Generation Z is a critical demographic beyond their interest in sustainability (e.g., their role as trendsetters or their purchasing power). 3. Theoretical Foundations: Add more details on the three components of ESG (Environmental, Social, and Governance) and provide specific examples from the fashion industry. 4. Methodology: While IBM AMOS is an excellent tool, explain why it was chosen and how it ensured robust results for reader’s benefits 5. Results: The results are well-presented. Linking them to actionable insights for fashion brands would improve their usefulness. 6. Discussion: Discuss how corporate image and WOM interact to influence consumer trust and behaviour. 7. Conclusion and Recommendations: The conclusion summarizes the findings well but: It should explicitly outline actionable recommendations for stakeholders in the fashion industry, such as strategies for enhancing ESG transparency or leveraging WOM campaigns. Consider adding a subsection specifically for managerial implications to highlight the study’s practical relevance. 8. Limitations and Future Research: Highlight other unexplored areas like the influence of social media or government policies on ESG practices in fashion. 9. Formatting and Language: There are minor grammatical errors and inconsistencies in formatting that need correction. Overall, This manuscript has significant potential to advance the understanding of ESG practices in the sustainable fashion industry. Is the work clearly and accurately presented and does it cite the current literature? Yes Is the study design appropriate and is the work technically sound? Yes Are sufficient details of methods and analysis provided to allow replication by others? Yes If applicable, is the statistical analysis and its interpretation appropriate? Yes Are all the source data underlying the results available to ensure full reproducibility? Yes Are the conclusions drawn adequately supported by the results? Yes Competing Interests: No competing interests were disclosed. Reviewer Expertise: Sustainable development, Issues related to SDGs and sustainability, behavioral economics, and agriculture market and policies I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard. Close READ LESS CITE CITE HOW TO CITE THIS REPORT Jaiswal DJ. Reviewer Report For: Building Trust through ESG: A Study on Consumer Behaviour in Sustainable Fashion [version 1; peer review: 1 approved] . F1000Research 2025, 14 :97 ( https://doi.org/10.5256/f1000research.173250.r361566 ) The direct URL for this report is: https://f1000research.com/articles/14-97/v1#referee-response-361566 NOTE: it is important to ensure the information in square brackets after the title is included in all citations of this article. COPY CITATION DETAILS Report a concern Respond or Comment COMMENT ON THIS REPORT Comments on this article Comments (0) Version 1 VERSION 1 PUBLISHED 16 Jan 2025 ADD YOUR COMMENT Comment keyboard_arrow_left keyboard_arrow_right Open Peer Review Reviewer Status info_outline Alongside their report, reviewers assign a status to the article: Approved The paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. Not approved Fundamental flaws in the paper seriously undermine the findings and conclusions Reviewer Reports Invited Reviewers 1 Version 1 16 Jan 25 read Dr Jagriti Jaiswal , IILM University, Gurugram, India Comments on this article All Comments (0) Add a comment Sign up for content alerts Sign Up You are now signed up to receive this alert Browse by related subjects keyboard_arrow_left Back to all reports Reviewer Report 0 Views copyright © 2025 Jaiswal D. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. 27 Jan 2025 | for Version 1 Dr Jagriti Jaiswal , IILM University, Gurugram, Haryana, India 0 Views copyright © 2025 Jaiswal D. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. format_quote Cite this report speaker_notes Responses (0) Approved info_outline Alongside their report, reviewers assign a status to the article: Approved The paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. Not approved Fundamental flaws in the paper seriously undermine the findings and conclusions While the paper makes a valuable contribution, there are a few areas where improvements could enhance its clarity, impact, and practical applicability. Key Points for Revision are mentioned below :- 1. Abstract: The abstract is clear but would benefit from Mentioning the practical implications of the study briefly to attract the reader's attention. 2. Introduction: Strengthen the rationale for focusing on the fashion industry by elaborating on its environmental and ethical challenges (e.g., fast fashion's environmental impact). Explain why Generation Z is a critical demographic beyond their interest in sustainability (e.g., their role as trendsetters or their purchasing power). 3. Theoretical Foundations: Add more details on the three components of ESG (Environmental, Social, and Governance) and provide specific examples from the fashion industry. 4. Methodology: While IBM AMOS is an excellent tool, explain why it was chosen and how it ensured robust results for reader’s benefits 5. Results: The results are well-presented. Linking them to actionable insights for fashion brands would improve their usefulness. 6. Discussion: Discuss how corporate image and WOM interact to influence consumer trust and behaviour. 7. Conclusion and Recommendations: The conclusion summarizes the findings well but: It should explicitly outline actionable recommendations for stakeholders in the fashion industry, such as strategies for enhancing ESG transparency or leveraging WOM campaigns. Consider adding a subsection specifically for managerial implications to highlight the study’s practical relevance. 8. Limitations and Future Research: Highlight other unexplored areas like the influence of social media or government policies on ESG practices in fashion. 9. Formatting and Language: There are minor grammatical errors and inconsistencies in formatting that need correction. Overall, This manuscript has significant potential to advance the understanding of ESG practices in the sustainable fashion industry. Is the work clearly and accurately presented and does it cite the current literature? Yes Is the study design appropriate and is the work technically sound? Yes Are sufficient details of methods and analysis provided to allow replication by others? Yes If applicable, is the statistical analysis and its interpretation appropriate? Yes Are all the source data underlying the results available to ensure full reproducibility? Yes Are the conclusions drawn adequately supported by the results? Yes Competing Interests No competing interests were disclosed. Reviewer Expertise Sustainable development, Issues related to SDGs and sustainability, behavioral economics, and agriculture market and policies I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard. reply Respond to this report Responses (0) Jaiswal DJ. Peer Review Report For: Building Trust through ESG: A Study on Consumer Behaviour in Sustainable Fashion [version 1; peer review: 1 approved] . F1000Research 2025, 14 :97 ( https://doi.org/10.5256/f1000research.173250.r361566) NOTE: it is important to ensure the information in square brackets after the title is included in this citation. The direct URL for this report is: https://f1000research.com/articles/14-97/v1#referee-response-361566 Alongside their report, reviewers assign a status to the article: Approved - the paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations - A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. 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