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Image of Journal of Applied Nonlinear Dynamics
ISSN:2325-6192 (print)
ISSN:2325-6206 (online)
Journal of Environmental Accounting and Management
António Mendes Lopes (editor), Jiazhong Zhang(editor)
António Mendes Lopes (editor)

University of Porto, Portugal

Email: aml@fe.up.pt

Jiazhong Zhang (editor)

School of Energy and Power Engineering, Xi'an Jiaotong University, Xi'an, Shaanxi Province 710049, China

Fax: +86 29 82668723 Email: jzzhang@mail.xjtu.edu.cn

ESG Performance and Customer Relationship Stability

Journal of Environmental Accounting and Management 14(3) (2026) 505--516 | DOI:10.5890/JEAM.2026.09.009

Yujing Guo, Yilin Liu

School of International Business, Shaanxi Normal University, China

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Abstract

As global supply chain networks become increasingly complex, the stability of these supply chains faces significant challenges. Research on the impact of Environmental, Social, and Governance (ESG) per-formance on customer relationship stability is of practical importance. This paper examines publicly listed companies from 2009 to 2022 to explore the effect of corporate ESG performance on customer relation-ship stability. Using a bidirectional fixed-effects model, the results demonstrate that strong ESG performance significantly promotes cus-tomer relationship stability and exhibits a dynamic effect. Compared to companies with declining ESG scores, those with stable ESG scores show a more pronounced improvement in customer relationship stabil-ity. Discrepancies in ESG ratings across different institutions weaken the impact on customer relationship stability. Mechanism analysis suggests that corporate ESG performance primarily enhances customer relationship stability through reputation and information effects. Heterogeneity tests reveal that the promotion effect of ESG performance on customer relationship stability is more significant among smaller companies, those with lower innovation levels, and those in non-heavy-pollution industries. Corporate ESG performance can improve overall factor productivity by enhancing customer relationship stability. The findings provide both theoretical support and empirical insights for the stable operation and security of China's supply chains.

Acknowledgments

The research is supported by Natural Science Basic Research Program of Shaanxi Province (Program No. 2025JC-YBQN-980), Social Science Foundation of Shaanxi Province (Grant No. 2024R031, 2025D030), Chinese Universities Scientific Fund (Grant No. 2452024034), the Innovation Capability Support Program of Shaanxi (Program No. 2025KG-YBXM-028), and the Philosophy and Social Sciences Special Youth Program of Shaanxi Province, China (Grant No. 2024QN387).

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