ESG Reporting and Corporate Sustainability in Ecuador: An Analysis of the Corporate Sector from an Economic-Accounting Perspective
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Abstract
This research interprets the actual level of commitment of the Ecuadorian corporate sector to ESG sustainability and its influence on economic value creation, measured through the Free Cash Flow to the Firm (FCFF) in 2024. A mixed-methods approach was employed, combining quantitative econometric analysis with qualitative documentary and bibliographic review. The study of 4,000 Ecuadorian companies empirically demonstrated that corporate sustainability generates tangible economic value, revealing a positive correlation between ESG commitment and financial profitability. Companies with low ESG commitment could increase their FCFF by approximately $1,543,779 when shifting to an intermediate commitment level, and by $1,666,790 when achieving a high commitment level—confirming that sustainability is not only an ethical imperative but also a profitable financial strategy. However, the analysis identified a bias toward environmental sustainability, accompanied by weak social and governance institutionalization. This reflects a partial implementation of the ESG approach in the Ecuadorian context, where challenges persist, such as noncompliance with legal reporting obligations, poorly designed incentives that promote greenwashing, and institutional weaknesses that hinder corporate transparency. The findings suggest that strengthening sustainability disclosure could lead to significant economic transformations, redefine competitive market dynamics, and restore public trust in fragile institutional environments—demonstrating that sustainability represents a strategic opportunity to create shared value between financial profitability and social responsibility.
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Andrés David Sánchez-Mishquero, Universidad Nacional de Chimborazo - Ecuador
https://orcid.org/0009-0001-9124-6262
Andrés David Sánchez Mishquero is an economist graduated from the Universidad Técnica Particular de Loja and is currently pursuing a master's degree in Accounting and Finance with a specialization in Fiscal, Financial, and Tax Management at the Universidad Nacional de Chimborazo. He has taught courses in Financial Planning, Budget Management, Cost Accounting, Microeconomics, and Econometrics. He specializes in the analysis of economic and financial data, with proficiency in the use of the statistical software STATA. He has complemented his education with courses in artificial intelligence, big data, customer service, and neuro-linguistic programming. He stands out for his discipline, analytical skills, and commitment to continuous improvement.
Edith Josefina Liccioni, Universidad Nacional de Chimborazo - Ecuador
https://orcid.org/0000-0001-6142-7022
Edith Josefina Liccioni is a Professor and Researcher with a distinguished academic career in Latin America. She currently works as a faculty member and researcher at the National University of Chimborazo (UNACH) in Ecuador. She holds a Ph.D. in Social Sciences, with a focus on Health and Society, a Master’s degree in Emotional Education, and a Master’s degree in Labor Administration and Labor Relations. Additionally, she has training in University Management and holds a Bachelor’s degree in Education with a specialization in Counseling. She has taught undergraduate, master's, and doctoral programs at universities in Ecuador and Venezuela, including PUCE and the University of Carabobo. As a certified Type A Researcher, she has coordinated several research projects, authored books and scientific articles, and actively participates as a national and international speaker on topics related to health, education, workplace well-being, and organizational culture.
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