Business Sustainability Practices and Their Effect on Investor Confidence in Indian Corporates

Authors

Dr Jyoti Gupta

Abstract

This research paper explores the intricate relationship between business sustainability practices and investor confidence in the context of Indian corporates. With growing awareness of environmental, social, and governance (ESG) dimensions, sustainability has emerged as a strategic priority influencing both corporate behaviour and investor decision-making. The paper begins by conceptualizing business sustainability, followed by an analysis of current global and Indian trends in ESG disclosures. It further examines how these practices influence investor perceptions, drawing from authentic data and regulatory initiatives such as SEBI’s Business Responsibility Reports. A sectoral analysis of sustainability adoption reveals significant variations, highlighting the leadership of industries like IT and pharmaceuticals. Through qualitative insights and numerical data, the study identifies major challenges, including inconsistent ESG standards, short-term investor outlooks, and credibility gaps in reporting. However, it also underscores opportunities such as the rise of ESG indices, regulatory mandates, and digital innovations in sustainability reporting. The concluding section offers practical suggestions for corporates, policymakers, and investors to bridge the sustainability-investment gap and promote a transparent, responsible business ecosystem in India. The paper affirms that embedding sustainability into core business strategy can enhance investor trust, unlock capital, and foster long-term economic resilience in the Indian corporate sector.

Keywords

Business Sustainability, ESG Practices, Investor Confidence, Indian Corporates, Responsible Investing, SEBI, ESG Indices, Sustainability Disclosure, Financial Resilience, Sustainable Development

Business Sustainability Practices and Their Effect on Investor Confidence in Indian Corporates. Dr Jyoti Gupta. 2015. IJIRCT, Volume 1, Issue 3. Pages 1-8. https://www.ijirct.org/viewPaper.php?paperId=2504045