Corporate Governance and ESG Performance: A Comparative Review across Institutional Contexts

Purpose: to comparatively analyze how corporate governance mechanisms affect ESG performance across different institutional contexts, highlighting the conditions under which governance arrangements effectively support sustainability outcomes. Methodology: The article is based on a comprehensive literature review of 77 high-quality peer-reviewed studies published over the past 17 years. It synthesizes empirical evidence on board composition, executive incentives, ownership structures, stakeholder engagement, corporate policies, and ESG performance through an integrated agency, stakeholder, and institutional perspective. Findings: Governance mechanisms such as board diversity, independent oversight, and ESG-linked executive compensation generally improve ESG performance, but their effects vary significantly across regions. North American evidence shows mixed results shaped by market incentives and opportunistic behavior. European studies report more consistent ESG improvements due to stronger regulation and stakeholderoriented governance. Asian research highlights reactive ESG strategies influenced by CEO characteristics, ownership concentration, and state-business relations. African evidence shows that governance capacity is a necessary condition for meaningful ESG outcomes. Managerial implications: Managers should design ESG governance systems that align with local institutional conditions, as formal reforms alone may yield symbolic rather than substantive sustainability practices. Research limitations: The review is constrained by differences across studies in methods, ESG measures, and regional coverage, which limit direct comparability. Originality: The study develops a context-dependent model of ESG governance and introduces the concept of an ESG governance-capacity threshold.