Innovation, Internal Control, and Promotion of ESG Practices in Businesses
Published: July 28, 2026
Abstract
This study explored the relationship between innovation, internal control, and ESG practices in businesses. The study presented an overview of previous research and related theories to promote ESG standards for the sustainable development of businesses. Meta analysis helps find the impact of innovation and internal control to reduce risks, strengthen governance, and move towards sustainable development through ESG standards. Previous studies were used to develop the study’s research model, design variables, conduct quantitative research, and evaluate the proposed research model.
Keywords
innovationinternal controlESG practices
References
1.
Bộ Tài chính (2020). Thông tư 96/2020/TT-BTC, ngày 16/11/2020 về Hướng dẫn công bố thông tin trên thị trường chứng khoán.
2.
Barbieri, J.C., Vasconcelos, I.F.G., de, Andreassi, T. and Vasconcelos, F.C.D. (2010). Innovation and sustainability: new models and propositions. RAE Revista de Administracao de Empresas, 50(2), 146-154.
3.
Buallay, A. (2019). Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector. Management of Environmental Quality: An International Journal, 30(1), 98-115.
4.
Campbell, J.L. (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of Management Review, 32(3), 946-967.
5.
Chenyang Wu (2024). Research on the Impact of Digital Transformation on Enterprise ESG Rating Performance. Transactions on Economics, Business and Management Research, 6, 1-11.
6.
Committee of Sponsoring Organizations - COSO (2017). Enterprise risk management integrating with strategy and performance. [Online] Available at https:// www.coso.org/Documents/2017-COSO-ERM-Integrating-with- Strategyand- Performance-Executive-Summary.pdf
7.
Deloitte (2021). Managing ESG performance - Compliant, insightful integrated reporting. [Online] Available at https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/energy-resources/deloitte-nl-eri-managing-esgperformance-report.pdf
8.
De Santis, F. & Presti, C. (2018). The relationship between intellectual capital and big data: a review. Meditari Accountancy Research, 26(3), 361-380.
9.
Drempetic, S., Klein, C. & Zwergel, B. (2019). The influence of firm size on the ESG score: corporate sustainability ratings under review. Journal of Business Ethics, 167(2), 333-360.
10.
Grazia Dicuonzo, Francesca Donofrio, Simona Ranaldo & Vittorio Dell’Atti (2022). The effect of innovation on environmental, social and governance (ESG) practices, Meditari Accountancy Research, 30(4), 1191-1209.
11.
Gallego‐Álvarez, I., Prado‐Lorenzo, J. M., & García‐Sánchez, I. M. (2011). Corporate social responsibility and innovation: A resource‐based theory. Management Decision, 49(10), 1709-1727.
12.
Hao, D. Y., Qi, G. Y., & Wang, J. (2018). Corporate social responsibility, internal controls, and stock price crash risk: The Chinese stock market. Sustainability, 10(5), 1697.
13.
Harasheh M. & Provasi. H (2022). A need for assurance: Do internal control systems integrate environmental, social, and governance factors? Corporate Social Responsibility and Environmental Management, 30(1), 384-401.
14.
Inmaculada Carrasco & Inmaculada Buendía-Martínez (2016). From the business strategy result to a source of economic development: The dual role of CSR. Journal of Small Business Strategy, 26(1), 69-86.
15.
Lombardi, R. & Secundo, G. (2020). The digital transformation of corporate reporting - a systematic literature review and avenues for future research. Meditari Accountancy Research, 29(5), 1179-1208.
16.
Marsat, S., & Williams, B. (2013). CSR and Market Valuation: International Evidence. Bankers, Markets & Investors, 123, 29-42.
17.
Meyer, J. and Roman, B. (1991). Institutionalized organizations: formal structure as myth and ceremony. [Online] Available at http://www.ccsa.ufpb.br/gets/contents/documentos/meyer_rowan_teoria_institucional.pdf
