Perceived ESG (Environmental, Social, Governance) and Consumers' Responses: The Mediating Role of Brand Credibility, Brand Image, and Perceived Quality

Abstract

This paper explores whether consumers' perceptions of environmental, social and governance initiatives can impact on attitude, and how three brand-related constructs-brand credibility, brand image and perceived quality-mediate this relationship. An online survey was conducted with 458 South Korean consumers, and the data were investigated through a partial least squares structural equation modeling (PLS-SEM) technique. The empirical results indicated direct positive effects of social and governance dimensions of perceived ESG on brand credibility, brand image, and perceived quality. However, no direct impact of the environmental dimension of perceived ESG on brand-related constructs was identified. Further, the results confirmed that brand credibility, brand image and perceived quality partially mediate the relationship between perceived ESG and attitude. Based on the findings, this paper suggests implications and future research directions.