Sustainability in Focus : Unveiling the Influence of ESG Practices on Family-Owned Businesses in Long-Term Performance

This research explores the relationship between family-owned businesses, ESG practices, and long-term firm performance. Family businesses prioritize financial outcomes over ESG practices but achieve better financial performance. Larger firms tend to have higher ESG scores, indicating more robust sustainability practices. Higher financial leverage is associated with lower ESG scores, posing challenges for debt-financed firms. Improving ESG practices benefits family businesses and larger firms in aligning with sustainability goals. Higher ESG scores may not always guarantee sustained long-term success, but firms with higher scores during COVID-19 experienced better long-term performance. The study underscores the importance of ESG practices for family-owned businesses. It provides insights for companies seeking to balance sustainability efforts with financial outcomes, and understanding family businesses' unique strategies aids in navigating the evolving ESG impact on long-term success