The Role of ESG Reporting in Enhancing Public Trust in Government-Owned Enterprises

Abstract

In an era marked by increasing demand for transparency and accountability, government-owned enterprises (GOEs) are under growing pressure to demonstrate responsible governance, environmental stewardship, and social impact. Environmental, Social, and Governance (ESG) reporting has emerged as a pivotal mechanism to address these expectations. This article explores the role of ESG reporting in enhancing public trust in GOEs by analyzing theoretical frameworks, empirical evidence, and best practices. Drawing on global case studies and literature from governance and sustainability domains, the study finds that ESG reporting, when implemented authentically and transparently, strengthens institutional legitimacy, stakeholder engagement, and long-term public confidence. However, challenges such as bureaucratic inertia, limited ESG literacy, and superficial reporting remain barriers. The article concludes with a strategic framework for improving ESG reporting in the public sector, aiming to bolster democratic accountability and rebuild trust in state-owned entities.