From Global Recognition to Sustainable Performance: Managing Corporate Halo Effects in ESG Implementation

This investigation examines the theoretical mechanisms through which corporate halo effects influence Environmental, Social, and Governance (ESG) management activities and subsequent performance outcomes in global retail enterprises. Corporate halo effects—encompassing brand prestige, global recognition, market position, and corporate credibility—are theorized as antecedent factors facilitating ESG implementation effectiveness. Employing structural equation modeling, the study analyzes survey data from 956 respondents evaluating global retail companies. The empirical findings reveal differential halo effect influences: corporate credibility emerges as the dominant predictor of ESG management activities, substantially exceeding brand prestige and global recognition, while market position demonstrates marginal non-significance. ESG management activities subsequently exhibit significant positive effects across all performance dimensions—market value, brand reputation, stakeholder trust, and sustainability. Pre-post experimental analysis demonstrates that ESG information exposure significantly enhances all four halo dimensions, with market position showing the most substantial amplification. Critically, organizational legitimacy functions as a dual amplification mechanism, moderating both halo-to-ESG pathways and ESG-to-performance relationships. These findings advance ESG-legitimacy scholarship by empirically validating corporate credibility’s primacy in facilitating authentic sustainability implementation while demonstrating legitimacy’s comprehensive enablement throughout the reputation-to-performance value chain. The research offers strategic insights for retail executives seeking to leverage reputational assets while acknowledging cultural boundary conditions inherent in Asian stakeholder perception frameworks.