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All Journal CITACONOMIA : Economic and Business Studies
La Ilman
Universitas Islam Syekh-Yusuf
Economics, Econometrics & Finance

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The Impact Of ESG (Environmental, Social, And Governance) Regulations On Corporate Legal Liability Dhian Tyas Untari; Pandri Zulfikar; Firman Maulana; Ahmad Syarif; Nyayu Maya Ardini; Andi Adri Agus; Cory Kartika Putri; Ahmad Nurhadi; Wachid Maulana; Hari Sudhana; Agustine Susi; Muhammad Ali Mustofa; Dony Ferdiansyah; Mahfudlon; La Ilman; M. Umar Kelibia; Toyib Zainal; Ibrahim Aji; Yasfika Ely Nur Afifah; Agus Eko Setiyawan
CITACONOMIA : Economic and Business Studies Vol. 5 No. 02 (2026): April - Juni
Publisher : CITACONOMIA

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.63922/citaconomia.v5i02.3194

Abstract

This study examines the influence of Environmental, Social, and Governance (ESG) regulations on corporate legal liability within the evolving framework of modern business law. As global business practices shift toward sustainability and accountability, ESG has transformed from a voluntary guideline into a mandatory regulatory standard that shapes corporate behavior. This research employs a qualitative and normative approach by analyzing relevant legal frameworks, scholarly literature, and case studies to explore how ESG regulations affect corporate responsibility. The findings indicate that ESG regulations significantly expand the scope of corporate legal liability beyond traditional financial obligations to include environmental protection, social responsibility, and governance transparency. Companies are increasingly held accountable through civil, criminal, and administrative sanctions for non-compliance with ESG-related standards. The study also highlights that effective ESG implementation can serve as a preventive mechanism, reducing legal risks and enhancing corporate governance. However, challenges remain, particularly in terms of regulatory harmonization, enforcement mechanisms, and varying levels of compliance across jurisdictions. This research concludes that ESG regulations play a critical role in strengthening corporate accountability and promoting sustainable business practices. Integrating ESG into corporate legal frameworks is essential for balancing economic objectives with social and environmental responsibilities in the long term.
Co-Authors Agus Eko Setiyawan Agustine Susi Ahmad Nurhadi Ahmad Syarif Andi Adri Agus Cory Kartika Putri Dhian Tyas Untari Dony Ferdiansyah Firman Maulana Hari Sudhana Ibrahim Aji M. Umar Kelibia Mahfudlon Muhammad Ali Mustofa Nyayu Maya Ardini Pandri Zulfikar Toyib Zainal Wachid Maulana Yasfika Ely Nur Afifah