A Business Process Management Perspective on ESG : Integrating Disclosure, Governance, and Reporting to Enhance Company Competitiveness

Abstract

This study examines environmental, social, and governance (ESG) disclosure as a core organizational process that enhances company competitiveness, a central objective of effective business process management, and investigates how this relationship is moderated by integrated reporting quality, chief executive officer (CEO) compensation, and stakeholder influence. Using panel data from 1570 company‐year observations of 314 publicly listed companies across six ASEAN countries—Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam—sourced from the LSEG database, the study finds that well‐developed ESG disclosure significantly improves competitiveness through higher profitability and increased domestic market share. However, these positive effects are weakened when ESG disclosure interacts with high‐quality integrated reporting, specific CEO compensation structures, and strong stakeholder influence. Notably, stakeholder influence plays a dual role by partially offsetting the negative moderating effects of other organizational mechanisms, highlighting the importance of nuanced change management in ESG process implementation. The findings provide practical insights for managers to integrate transparent ESG disclosure into performance‐oriented business processes while ensuring alignment with reporting and compensation systems to preserve strategic value. For policymakers, the results underscore the need to promote regulatory environments that support effective ESG reporting across diverse economic contexts. By re‐conceptualizing ESG disclosure as a dynamic organizational process rather than a static reporting activity, this study contributes a multi‐dimensional, process‐oriented framework that advances understanding of how ESG practices generate sustainable company competitiveness within the ASEAN context.