THE IMPACT OF STAKEHOLDER PRESSURE AND GREEN GOVERNANCE ON COMPANY VALUE

Abstract

Currently, many organizations have begun to shift from the traditional way of only reporting financial aspects, changing to a more modern direction, namely reporting all aspects, both financial and non-financial (social and environmental dimensions) to stakeholders. This study aims to examine the relationship between stakeholder pressure and green governance on company value. This study employs a qualitative descriptive approach to explore the influence of stakeholder pressure and green governance on company value. The empirical studies show stakeholder pressure is essential in initiating environmental transformation, the realization of sustainable competitive advantage and higher firm value is conditional upon robust, sincere, and institutionally embedded green governance practices. Stakeholder pressure serves as an external catalyst, while green governance acts as the internal engine that transforms sustainability demands into long-term corporate value. Firms that treat ESG as a strategic imperative are better positioned to gain stakeholder trust, reduce risk exposure, and secure long-term financial performance.