From ESG to Brand Equity: The Mediating Role of Brand Reputation and Brand Attachment

Abstract

As environmental, social, and governance (ESG) considerations become increasingly central to brand strategy, understanding how ESG practices influence consumer-based brand equity is both timely and theoretically significant. This conceptual paper explores the psychological mechanisms through which ESG practices affect brand equity, drawing on the Stimulus–Organism–Response (S-O-R) framework. In this model, ESG dimensions function as external stimuli that shape consumer responses through two key internal mechanisms: brand reputation and brand attachment. Brand reputation reflects consumers’ cognitive evaluations of trustworthiness and ethical standing, while brand attachment captures the emotional bonds consumers develop with value-aligned brands. This paper proposes a conceptual framework in which ESG practices positively influences both brand reputation and brand attachment, which subsequently drive brand equity. It also posits a sequential mediating relationship in which brand reputation fosters brand attachment, forming a dual pathway between ESG efforts and brand value. The paper contributes to the literature by integrating ESG, branding, and consumer psychology into a unified model, offering theoretical insights and practical implications for firms seeking to enhance their brand equity through responsible and emotionally resonant sustainability strategies.