CITACONOMIA : Economic and Business Studies
Vol. 5 No. 02 (2026): April - Juni

The Impact Of ESG (Environmental, Social, And Governance) Regulations On Corporate Legal Liability

Dhian Tyas Untari (Universitas Islam Syekh-Yusuf)
Pandri Zulfikar (Universitas Islam Syekh-Yusuf)
Firman Maulana (Universitas Islam Syekh-Yusuf)
Ahmad Syarif (Universitas Islam Syekh-Yusuf)
Nyayu Maya Ardini (Universitas Islam Syekh-Yusuf)
Andi Adri Agus (Universitas Islam Syekh-Yusuf)
Cory Kartika Putri (Universitas Islam Syekh-Yusuf)
Ahmad Nurhadi (Universitas Islam Syekh-Yusuf)
Wachid Maulana (Universitas Islam Syekh-Yusuf)
Hari Sudhana (Universitas Islam Syekh-Yusuf)
Agustine Susi (Universitas Islam Syekh-Yusuf)
Muhammad Ali Mustofa (Universitas Islam Syekh-Yusuf)
Dony Ferdiansyah (Universitas Islam Syekh-Yusuf)
Mahfudlon (Universitas Islam Syekh-Yusuf)
La Ilman (Universitas Islam Syekh-Yusuf)
M. Umar Kelibia (Universitas Islam Syekh-Yusuf)
Toyib Zainal (Universitas Islam Syekh -Yusuf)
Ibrahim Aji (Universitas Islam Syekh-Yusuf)
Yasfika Ely Nur Afifah (Universitas Islam Syekh-Yusuf)
Agus Eko Setiyawan (Universitas Islam Syekh-Yusuf)



Article Info

Publish Date
17 Apr 2026

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.

Copyrights © 2026






Journal Info

Abbrev

CITACONOMIA

Publisher

Subject

Economics, Econometrics & Finance

Description

CITACONOMIA: Economic and Business Studies is a high quality open access peer reviewed research journal. providing a platform for the researchers, academicians, professional, practitioners and students to impart and share knowledge in the form of high quality empirical and theoretical research ...