ESG Branding and Consumer Trust: The Mediating Role of Brand Authenticity (A SEM-PLS Approach)
Keywords:
Environmental, Social, and Governance (ESG) branding, consumer trust, brand authenticityAbstract
As sustainability becomes central to contemporary brand strategy, consumers increasingly expect brands to demonstrate genuine ESG commitment rather than symbolic or promotional communication. The research investigates the influence of Environmental, Social, and Governance (ESG) branding on consumer trust, emphasizing the mediating role of brand authenticity. Grounded in signaling theory and stakeholder theory, the research employs a Structural Equation Modeling-Partial Least Squares (SEM-PLS) approach using survey data from consumers who are familiar with brands implementing ESG-oriented practices. The findings reveal that ESG branding positively influences brand authenticity and consumer trust, while brand authenticity plays a critical role in strengthening consumer trust. Moreover, brand authenticity partially mediates the relationship between ESG branding and consumer trust, indicating that ESG initiatives are more effective when perceived as authentic and aligned with a brand’s core values. These results suggest that authenticity functions as a key psychological mechanism that transforms ESG initiatives into credible signals, fostering deeper consumer confidence and supporting Sustainable Brand Equity (SBE). From a theoretical perspective, the research enriches the ESG branding literature by integrating brand authenticity as a central mechanism in sustainability-driven brand perception. From a managerial perspective, the findings highlight the importance of implementing transparent, consistent, and value-aligned ESG actions. Brands that authentically embed ESG principles into their identity, rather than relying on superficial promotion, are more likely to build lasting consumer trust, strengthen competitive positioning, and achieve long-term strategic advantage.
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