Influence of ESG Compliance on Product Safety Performance : Evidence from Indian Manufacturing Firms
Abstract
The study examines the impact of Environmental, Social and Governance (ESG) compliance on Product safety Performance in Indian manufacturing firms, a relationship that remains underexplored in emerging marktets. The research aims to assess how individual ESG components- Environmental Compliance (EC), Social Responsibility, (SR), and Governance Practices (GP) - influence product safety outcomes and how overall ESG integration contributes to safer manufacturing operations. Primary data were collected through a structured quetionnaire, and a sample of Indian manufacturing firms was analyzed using Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), correlation analysis and Structural Equation Modelling( SEM). the results confirm strong reliability and validity of the measurement model and reveal significant positive effects of all ESG dimensions on product safety, with Governance Practices emerging as the strongest predictor. the composite ESG construct also demonstrates a substantial positive influence on product safety outcomes. The study offers practical implications for policymakers, industry leaders, and investors by emphasizing ESG integration as a strategic tool for improving product safety and operational excellence. This research contributes novel empirical evidence linking ESG compliance and product safety performance in the Indian manufacturing sector.