08 Apr 2025
Recently, the collaborative paper “Navigating the ESG Seascape: Media Sentiment toward ESG and Corporate Strategies” by Dr Cheng Xu from the Department of Strategic Management and Organisation at International Business School Suzhou (XJTLU) at Xi’an Jiaotong-Liverpool University (XJTLU) has been published in the Journal of Accounting Literature, an ABS 3 rated journal.
Environmental, Social, and Governance (ESG) factors have become critical for corporate decision-making, shaping strategies that balance profitability with sustainability and social responsibility. As industries increasingly integrate ESG frameworks, understanding media sentiment toward ESG becomes pivotal. Media coverage influences corporate reputations, investor confidence, and stakeholder engagement. This report highlights the findings of a study exploring the interplay between media sentiment and corporate ESG strategies, with actionable insights for businesses.
The analysis reveals that media sentiment acts as a significant driver of ESG priorities, often amplifying public awareness and pressure for corporate accountability. Positive media coverage of ESG initiatives correlates with enhanced corporate reputation and shareholder value, while negative sentiment often exposes firms to reputational risks and divestment threats. For industries such as finance, energy, and consumer goods, where public perception is closely tied to brand equity, navigating the ESG narrative is critical.
One key takeaway from the study is the role of media in setting ESG agendas. Media outlets often spotlight issues such as climate change, diversity, and corporate governance, steering public attention and influencing regulatory priorities. This creates both opportunities and challenges for companies. By aligning strategies with prominent media narratives, firms can not only enhance their market positioning but also mitigate risks associated with misaligned ESG practices.
The findings also underscore the evolving nature of ESG metrics and their representation in media. While traditional metrics like carbon emissions and gender diversity remain central, emerging areas such as data privacy and AI ethics are gaining traction. Industries must therefore adopt a dynamic approach, proactively addressing new ESG dimensions highlighted in media discourse. This demands close monitoring of media sentiment trends and the integration of real-time insights into corporate decision-making.
For businesses, adopting a proactive media engagement strategy is crucial. Transparent communication about ESG goals, progress, and challenges fosters trust and counters misinformation. Strategic partnerships with credible media outlets and participation in ESG-focused dialogues further amplify positive coverage. Additionally, leveraging data analytics to monitor media sentiment enables companies to anticipate potential risks and adapt strategies accordingly.
The study also highlights regional variations in media sentiment. For instance, European media demonstrates a stronger focus on environmental issues, reflecting stricter regulations and consumer expectations. In contrast, North American media places relatively more emphasis on governance, particularly in the context of executive accountability and shareholder rights. Understanding these regional nuances is vital for multinational corporations tailoring their ESG strategies across markets.
Another significant implication for industries is the growing role of social media as a parallel platform shaping ESG sentiment. Unlike traditional media, social media provides a more democratized and real-time space for discourse, amplifying both positive endorsements and criticisms. Corporations must develop robust social media monitoring frameworks and crisis management protocols to address this dynamic aspect of ESG communication.
In conclusion, the intersection of media sentiment and ESG strategies presents both risks and opportunities for businesses. Companies that effectively navigate this landscape by aligning their ESG initiatives with media narratives, engaging transparently with stakeholders, and leveraging sentiment analysis technologies are better positioned to achieve sustainable growth. By embedding ESG considerations into their core strategies and actively managing media perceptions, industries can not only meet stakeholder expectations but also drive long-term value creation in an increasingly ESG-conscious world.
About the author:
Dr Cheng Xu is a researcher at Xi’an Jiaotong-Liverpool University and an adjunct lecturer at Shanghai Jiao Tong University, specializing in applied AI, AI ethics, and user behavior analysis. His highly cited work has been published in top journals like Social Science and Medicine and Journal of Business Ethics, earning awards such as the Wiley Top Cited Article Award. He holds editorial roles at Humanities and Social Sciences Communications and serves on the Neuroeconomic Management Committee in China. Before academia, he worked in strategy and investment at Beijing Science Park Development Group and multinational real estate funds, managing high-value projects. Earlier, his luxury retail experience in global cities enriched his consumer behavior research insights.
About the Journal:
The Journal of Accounting Literature is a peer-reviewed academic journal that publishes high-quality research, critical reviews, and thought-provoking perspectives on accounting theory, practice, and education. Recognized as an ABS 3-rated journal, it serves as a platform for advancing knowledge in accounting by featuring both empirical and theoretical contributions. The journal is particularly known for synthesizing existing literature and identifying emerging trends, making it valuable for scholars and practitioners. It covers topics such as financial reporting, auditing, management accounting, and accounting ethics. With its rigorous editorial standards, the journal contributes to shaping the future of accounting research and practice.
08 Apr 2025