TRUST, SOCIAL CAPITAL AND ESG PERFORMANCE: AN EMPIRICAL ANALYSIS ON EUROPEAN BANKS

This study explores the determinants of corporate ESG performance, emphasizing the often-overlooked role of informal institutions, particularly social trust. While existing research hasextensively analyzed internal corporate attributes and formal institutional factors shaping ESGoutcomes, the direct impact of social trust remains underexplored. Focusing on European banks,this study posits that social capital signi¯cantly enhances ESG performance. By examining theinterplay between formal and informal institutions, the research provides actionable insights forpolicymakers and highlights the importance of integrating social capital into corporate sus-tainability strategies.