Research On ESG Practice And Economic Consequences In Home Appliance Industry

The concept of ESG emphasizes the concern of corporate environment,social responsibility and corporate governance performance,and believes that the sustainable development ability of enterprises should be comprehensively measured in combination with the practice performance of ESG.With the concept of sustainable development gradually becoming a global consensus,enterprise ESG practice has increasingly become a hot topic in the theoretical and practical circles at home and abroad.At present,some scholars have proved through research that ESG practice of enterprises is not a burden in the development process,but a favorable guarantee for improving business performance,improving enterprise value and promoting long-term development of enterprises.However,domestic exchanges have not yet formulated ESG guidelines,and mainly encourage listed companies’ ESG practice and relevant information disclosure.As a result,most domestic enterprises do not pay attention to ESG concept,and according to WIND database,more than 40% of listed companies need to improve their ESG practice performance.Therefore,the case analysis of companies with good ESG practice in domestic capital market can arouse other enterprises’ attention to the concept of ESG,and also provide reference for other enterprises to carry out ESG practice.In addition,China is in a critical period of industrial structure adjustment and economic transformation and upgrading.As a typical representative of the development of China’s real economy and manufacturing industry,the integration of ESG concept into the development is conducive to the transformation and upgrading of enterprises,and also conducive to the high-quality development of China’s economy.This paper chooses Haier Smart Home for case analysis,and the reasons are as follows: First,the ESG practice of the enterprise is relatively complete,and has been recognized by many authoritative ESG rating agencies at home and abroad.Second,the enterprise is one of the leaders in the household appliance industry,and its ESG practice has a certain influence on other enterprises in the industry.Therefore,the study of Haier Smart Home as an example can provide reference for other enterprises’ ESG practice to a certain extent.And guide household appliance enterprises to practice ESG concept.Based on this,this paper firstly systematically combs the relevant literature of domestic and foreign scholars on the motivation,practice performance and economic consequences of enterprise ESG practice,which lays the foundation for the theoretical analysis and case analysis.Secondly,combined with literature review and theoretical analysis,this paper tentatively discusses the influence path of enterprise ESG practice on enterprise economic consequences,and analyzes and concludes the influence path of enterprise related practice results on enterprise operation from the three dimensions of environment,society and governance.Furthermore,the overall performance of ESG practices composed of environmental,social and governance practices is summarized to finally influence the path of enterprise value.Thirdly,this paper analyzes the motivation of enterprise ESG practice based on scholars’ research and Haier Smart Home’s own situation.Finally,on the basis of the above path induction,this paper analyzes the ESG practice of Haier Smart Home,and discusses the economic consequences of enterprise ESG practice from the two aspects of enterprise management and enterprise value.This paper analyzes Haier Smart Home’s ESG practice and its economic consequences through the method of literature research,case study and practice research.The research draws the following conclusions: First,the motivation for enterprises to practice ESG concept involves many aspects,while the motivation for Haier Smart Home to actively carry out ESG practice includes meeting the demands of stakeholders,improving the competitiveness of enterprises,responding to regulatory requirements and keeping up with the development trend;Second,from 2019 to 2021,Haier Smart Home’s practice performance in environment,society and governance will be increasingly optimized,which will improve corporate reputation,reduce costs,increase innovation results,improve governance structure,protect employees’ rights and interests,establish good cooperative relations with customers and suppliers,and alleviate information asymmetry.The company’s overall ESG practice performance has also been recognized by third-party rating agencies and all sectors of society;Third,Haier Smart Home’s excellent ESG practice has improved the profitability,operation level,financing ability and investment efficiency of the enterprise to varying degrees.Meanwhile,its good ESG practice performance has also been recognized by the market,which is conducive to the improvement of enterprise value and enables the enterprise to show stronger resilience when facing the impact of macro uncertainties,so as to resist the risk impact.Finally,based on the perspectives of enterprises,government and investors,this paper respectively puts forward relevant suggestions to promote the popularity of ESG concept,and guide enterprises to integrate ESG concept into enterprise management,so as to enhance the competitiveness of enterprises and promote the sustainable development of enterprises.Existing literature studies on corporate ESG practice and its economic consequences mainly study the relationship between the two in the way of empirical analysis,and rarely study the path of specific corporate ESG practice behaviors affecting corporate economic consequences.Through literature review,this paper summarizes the influence path of specific practice behavior of enterprise ESG on enterprise economic consequences,and supplements and enriches relevant theoretical research results.At the same time,the case study provides supplementary evidence for the empirical research on ESG practice and its economic consequences to some extent.In addition,this paper combs the specific behavior of Haier Smart Home’s excellent ESG practice,which has certain reference value for other enterprises to carry out ESG practice and improve ESG performance.Finally,this paper provides suggestions for government departments to better guide enterprises to carry out ESG practice,in order to promote the high quality development of our capital market.