SUSTAINABILITY REPORTING, ENVIRONMENTAL, SOCIAL, AND GOVERNANCETRANSPARENCY, AND MSME PERFORMANCE: A SYSTEMATIC LITERATUREREVIEW

Abstract

This study aims to analyze the development of scholarly research on sustainability reporting, Environmental, Social, and Governance (ESG) transparency, and the performance of Micro, Small, and Medium Enterprises (MSMEs) through a Systematic Literature Review approach. This topic has become increasingly relevant due to the growing attention to sustainable business practices and the demand for transparency in non-financial information, including within the MSME sector, which serves as one of the main drivers of the economy. MSME performance is influenced not only by production capacity, marketing capability, and financial management, but also by the ability of business actors to implement sustainability principles, provide transparent information, and integrate environmental, social, and governance aspects into their business activities. Sustainability reporting and ESG transparency have become increasingly important because they can enhance accountability, stakeholder trust, access to financing, business reputation, and the competitiveness of MSMEs in responding to an increasingly complex business environment. This study employs a Systematic Literature Review method by examining relevant scholarly articles on sustainability reporting, ESG, information transparency, and MSME performance. The review process was conducted through the stages of identification, screening, eligibility assessment, and literature synthesis to obtain a systematic understanding of the relationships among the concepts. The findings indicate that sustainability reporting plays an important role in strengthening transparency and accountability among MSMEs. In addition, ESG transparency contributes to improving MSME performance by enhancing stakeholder trust, strengthening business legitimacy, supporting risk management, and creating long-term value.