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International Journal of Advanced Research in Education and TechnologY(IJARETY)
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Article

TITLE The Symbiosis Imperative: A Multi-Dimensional Analysis of Sustainable Business Practices and Corporate Financial Performance in the Contemporary Economy
ABSTRACT The interplay between sustainable business practices and corporate financial performance has transformed from a marginal concern in ethics to a core strategic necessity in the contemporary economy. This research paper presents a holistic, multi-dimensional analysis of this intricate relationship, integrating the results of recent meta-analyses, industry studies, and empirical research articles published between 2021 and 2026. Using stakeholder theory, resource-based view, and institutional theory, we construct an integrated framework that investigates both direct and moderated effects of environmental, social, and governance (ESG) practices on financial performance. Our approach integrates bibliometric analysis of 533 articles with meta-analytic analysis of 102 independent studies and comparative analysis of sustainable versus conventional firms in diverse geographies. The findings show a complex scenario: while meta-analytic findings confirm a significantly positive association between corporate sustainability and financial performance in general, the association is moderated by geographical location, institutional setting, and ESG factors. In particular, social and governance issues show positive correlations with financial performance, while environmental issues show a weaker and sometimes negative correlation in the short term because of the investment required and the time lag in manifestation. Notably, our analysis reveals a two-way causality between financial performance and sustainability investment, where the latter drives value creation. The results show that companies that scored highest in CDP’s ratings unlocked $218 billion worth of environmental opportunities and reduced emissions at a rate four times faster than others . This paper concludes that sustainable practices are no longer a choice but a fundamental force behind competitive advantage.
AUTHOR Dr.M.Tharakeswari Assistant Professor, Department of Accounting and Finance, Anna Adarsh College for Women, Tamil Nadu, India
VOLUME 13
DOI DOI:10.15680/IJARETY.2026.1302003
PDF 3_The Symbiosis Imperative A Multi-Dimensional.pdf
KEYWORDS
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