Sumit Kumar
An analysis of the literature reveals that the "ESG performance" has not been defined explicitly, making it hard to evaluate and analyse prior corporate ESG actions. Furthermore, all available research on ESG performance (save one) considers the cumulative and integrated consequences of environmental, social, and governance practices on sustainability and value generation for all stakeholders. To make better ESG investment decisions, we need to understand how various ESG components affect stakeholder value development. When it comes to value, it is made up of both positive and negative externalities. Thus, value must be perceived and supplied individually within environmental and social restrictions. The purpose of this research study is to build a hypothesis describing the link between ESG and stakeholders' values within the context of sustainability. It is founded on a methodical evaluation of the current literature utilizing the grounded theory method. The variables described and utilized in various ESG literatures, as well as the values of stakeholders, are assembled from numerous research, together with the techniques of inquiry, study measurements, and conclusions, to construct the model for this theory. The relevant literatures were studied to extract the components used to describe various elements of ESG performance studies to develop a theory of value creation for stakeholders through the usage of an ESG performance indicator. In this article, a modified version of "Grounded theory" is implemented using "selective coding." The current research reveals that "ESG success" is not well defined from the standpoint of stakeholders' value generation, making it difficult to quantify and assess organizations' ESG activities.