Analysis of Strategic Marketing on Sustainable Business in the Finance Industry Performance

Abstract

The current study aims at inspecting the effects of strategic marketing in encouraging the adoption of sustainable practices and improving business performance in the finance industry, particularly in India. The study puts in the quantitative approach with the use of secondary data that is obtained from 99 Indian financial institutions for FY2023-24. Descriptive statistics, correlation analysis, Probit and OLS regressions are used to evaluate the effects of ESG performance and profitability on green finance. Results show a significant and positive relationship between ESG performance and probability of issuing green bonds. Governance is recorded as having the highest average ESG score and is the pillar that shows the strongest relationship with ESG performance. It is found that profitability is a moderator of the relationship between ESG performance and the issuance of green bonds. From the standpoint of strategic marketing, the results suggest that credible sustainability practices would help to foster trust, provide opportunities for green finance products and enhance the firm's strategic positioning. However, communication regarding sustainability should be supported by measurable ESG practices to avoid greenwashing.