ESG Performance and Corporate Corruption Risk Management: The Moderating Role of Risk Management Committees in GCC Firms

This study investigates the impact of environmental, social, and governance (ESG) performance on corporate corruption risk management (CCRM) and examines the moderating role of the risk management committee (RMC) among non-financial firms in Gulf Cooperation Council (GCC) countries for the period spanning from 2015 to 2024. Building on agency and legitimacy theories, the study argues that ESG performance strengthens governance quality and ethical accountability, which is reflected in higher quality CCRM. Additionally, RMCs are expected to play a moderating role in enhancing oversight effectiveness, which boosts such a relationship. Using panel data derived from the Refinitiv Eikon database and employing Feasible Generalized Least Squares (FGLS) regression, the results reveal that firms with higher ESG performance exhibit significantly stronger corruption risk management practices. Moreover, the interaction between ESG performance and RMC presence positively amplifies this relationship, underscoring the committee’s role in institutionalizing ethical conduct and improving governance transparency. Robustness tests using alternative ESG and CCRM measures confirm the consistency of these findings. The study provides novel empirical evidence from the GCC context, highlighting how governance structures and sustainability practices jointly enhance corporate integrity. It offers theoretical, practical, and policy implications for promoting ethical governance and sustainable development in emerging markets.