THE EFFECT OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTING ON CORPORATE REPUTATION IN NIGERIA

Abstract

This study examined the impact of Environmental, Social, and Governance (ESG) reporting on corporate reputation, stakeholder trust, and investment inflows in Nigerian companies. Using a survey methodology, data were collected from 222 respondents across various sectors in Nigeria. The findings reveal that ESG reporting is perceived to significantly enhance corporate reputation, with 38.3% of respondents indicating a strong improvement in their company’s reputation and 27.0% reporting a moderate improvement. Despite these benefits, the study identifies key barriers to the adoption of ESG reporting, including lack of expertise (31.5%), high implementation costs (27.0%), and insufficient regulatory support (22.5%). Furthermore, ESG reporting is seen as crucial in fostering stakeholder trust, with 36.0% of respondents believing it strongly increases trust and 31.5% viewing it as somewhat beneficial. The research also highlights the positive effect of ESG reporting on investment inflows, with 33.8% of respondents noting a moderate positive impact. The study recommends that Nigerian companies invest in capacity building and training, integrate ESG reporting into their long-term strategic goals, and that the government introduce clear regulatory frameworks and incentives to encourage broader adoption of ESG practices. Therefore, the research underscores the growing importance of ESG reporting in enhancing corporate sustainability and attracting long-term investment in Nigeria