Name: Iqra

Section B
013-19-0156
Title: Inter-Firm ESG Rivalry: A Competitive Dynamics View
Link: https://www.mdpi.com/2071-1050/14/20/13665

The article examines the growing trend of incorporating environmental, social, and governance (ESG)
concepts into company supply chains and corporate operations. The study investigates if the focus firm's
ESG conduct is influenced by the competing firm's ESG behavior. It explores how the rival firm's
exposure to ESG risk impacts the focus firm's exposure to such risks. The study also investigates how the
targeted firm's competitive landscape modifies behavioral impact. The article emphasizes that firms
prioritize ESG efforts for strategic, philanthropic, and regulatory reasons. ESG activities help businesses
to obtain a competitive advantage over competitors while also appealing to evolving consumer
preferences. The study adds to the literature on sustainability by investigating the driving factors that
push businesses to pursue sustainable practices. In conclusion, the paragraph examines the growing
trend of businesses incorporating Environmental, Social, and Governance (ESG) concepts into their
business operations and supply networks. It investigates the motives for such practices, including
strategic, altruistic, and government and non-profit pressure. The sentence highlights an important gap
in knowledge in the literature: motivation motivated by competitive pressure resulting from rival
businesses' actions. To address this gap, the author investigates whether the competitor firm's ESG
conduct impacts the focal firm's behavior, with an emphasis on how the rival firm's exposure to ESG risk,
as assessed by the RepRisk Index, affects the focal firm's exposure to such risks. The study also looks at
how the focal firm's competitive landscape, such as the rival's supply chain reputation, industry
concentration, and focal firm size, can help to mitigate the effects of the focal firm's competitive
environment. Moreover, the author discovers that the focal firm's size and industry focus help to
minimize this rivalry. The competing firm's sustainability reputation, on the other hand, has no major
influence on the rivalry. These findings imply that competing businesses' sustainability policies can have
a major impact on a firm's own sustainability practices, especially for bigger enterprises in concentrated
sectors.