INSTITUTIONAL INVESTMENT AND SUSTAINABLE BUSINESS PRACTICES: A CANADIAN PERSPECTIVE ON SOCIAL RESPONSIBILITY

Abstract

This research focuses on the connection of institutional investment, its social responsibility in sustainable business, ESG policy implementation, companies’ engagement, and ESG reports on sustainability results. This study employs survey data from 385 Canadian participants. The study used SEM analysis with Smart PLS and identified ESG reporting and social responsibility as core aspects that substantially impact sustainable business practices. However, the impact of integration of ESG policy and portfolio engagement is comparatively less significant. It, therefore, gives social responsibility its rightful place as the central factor that explains sustainability reporting, focusing on the level of transparency. Overall, the present study has important implications for institutional investors and corporate managers, inviting them to enhance ESG integration and develop a strong sense of social responsibility to address sustainable development objectives better. For future purposes, corporate social responsibility has moved beyond mere ESG scores, and sustainability has to be embedded into the organisation’s DNA for survival in the long run.