The Impact of ESG on Corporate Sustainability from the Perspective of Generation Z

As global efforts toward sustainable development intensify, Environmental, Social, and Governance (ESG)practices have become a core element of corporate strategy. This study aims to examine how differentdimensions of corporate ESG activities shape Generation Z consumers’ perceptions of corporate image—specifically warmth and competence—and how these perceptions influence their evaluations of corporatesustainability. Drawing on the Stereotype Content Model, which posits warmth and competence as the twoprimary dimensions of social perception, this research analyzes the distinct impacts of ESG dimensions onthese perceptions. A survey conducted among Generation Z individuals in China yielded 297 valid responses. The findings indicate that environmental initiatives significantly enhance both warmth and competenceperceptions, whereas social initiatives fail to significantly influence warmth perceptions, and governanceefforts do not significantly impact competence perceptions. Furthermore, both warmth and competenceperceptions positively affect sustainability evaluations. These results highlight the dominant role ofenvironmental initiatives in shaping favorable consumer perceptions and underscore the need for improvedcommunication and visibility of social and governance practices. This study contributes theoretically byintegrating ESG with consumer perception models and provides practical implications for firms seeking tostrengthen corporate sustainability through strategic ESG initiatives and targeted communication