A Study On The Motivation And Economic Consequences Of ESG Behavior In Enterprises With Declining Performance

In 2020,China clearly put forward the goals of "carbon peak" by 2030 and "carbon neutrality" by 2060.This strategic goal is not only the starting point to promote the comprehensive green transformation of China’s economy and society,but also an indispensable part of building a global community of shared future.The sustainable development concept and green and lowcarbon thinking of ESG are highly aligned with China’s "dual carbon" goals.Promoting the development of ESG is conducive to demonstrating China’s determination to pursue a green development path and promote common human development.However,in the development and transformation of ESG,compared to European and American countries with developed ESG investments,the ESG practices of listed companies in China are in the early stages of application,and the infrastructure and regulatory framework for sustainable development in China still need to be further built or improved.Therefore,this article studies the motivation and economic consequences of corporate ESG behavior from the perspective of win-win cooperation between enterprises and stakeholders,providing richer case studies for ESG’s practice in China.Specifically,this article first systematically reviews the ESG policies of rapidly developing countries such as the United States and the European Union,and compares China’s ESG policies with those of European and American countries.It analyzes the challenges that exist in the development process of China’s ESG policies and provides suggestions for the formulation of China’s ESG policies.Secondly,this article selects Chinese Online,which performed well in ESG behavior during a period of declining performance,as the research object,and compares Changjiang Media,which also performed well in ESG behavior during a period of flat performance.In theory,due to the impact of business performance,companies with declining performance are more likely to reduce ESG behavior.However,the case study found that Chinese Online did not reduce ESG behavior during the period of declining performance,and even had a stronger enthusiasm for ESG behavior than Changjiang Media.Therefore,this article further analyzes the main reasons why companies with declining performance actively implement ESG,and finds that Chinese Online conveys positive signals of good future development to stakeholders through the implementation of positive ESG behavior,in order to gain stakeholder support for the company.From the perspective of economic consequences,Chinese Online finally achieved a virtuous cycle of good ESG behavior and enterprise value growth,achieving the sustainable development goal of win-win cooperation with stakeholders.The research in this article provides some theoretical research on the motivation and economic consequences of ESG behavior in companies with declining performance,providing reference for the practice of ESG behavior in Chinese enterprises,and providing reference for the formulation of ESG policies in China.