The Impact of ESG Activities on Corporate Image and Purchase Intention: Focusing on Mongolia's APU and MCS Coca-Cola

This study empirically analyzes the impact of ESG (Environmental, Social, Governance) initiatives on corporate image and consumer behavioral intention, focusing on two leading Mongolian companies, APU and MCS Coca-Cola. The aim is to verify the mediating role of corporate image between ESG and purchase intention, thereby contributing to the establishment of effective ESG management strategies for companies. The results indicate that for APU, the Social (S) and Governance (G) aspects of ESG had significant positive effects on corporate image, with Governance also directly impacting consumer behavioral intention. Conversely, the Environmental (E) aspect did not significantly affect either corporate image or consumer behavioral intention. Corporate image was found to fully mediate the effects of Social and Governance on consumer behavioral intention. In the case of MCS Coca-Cola, the Environmental (E) and Governance (G) aspects significantly positively influenced corporate image, and the Environmental aspect directly affected consumer behavioral intention. Corporate image partially mediated the effect of Environmental on consumer behavioral intention and fully mediated the effect of Governance. However, the Social (S) aspect did not have a significant impact on corporate image or consumer behavioral intention, and no mediating effect was observed. These findings suggest that corporate image plays a crucial role in influencing consumer behavioral intention and that a company's ESG efforts can affect consumer behavior through corporate image. Moreover, the differing effects of ESG components across companies highlight the importance of strategic ESG initiatives tailored to a company's characteristics and market environment. Notably, improvements in Governance (G) in both companies positively impacted corporate image and consumer behavioral intention, underscoring the significance of transparent and fair management practices. This study demonstrates that Mongolian companies can adopt advanced ESG management techniques through collaboration with multinational corporations and, by enhancing their corporate image based on these practices, can influence consumer behavior. By selecting and focusing on ESG areas aligned with their strengths, companies can promote sustainable management and enhance competitiveness. However, the study's generalizability is limited due to its focus on specific Mongolian companies, indicating the need for further research encompassing various countries and industries. Additionally, more detailed analyses considering consumers' levels of ESG awareness and in-depth studies on the effects of specific ESG components are necessary.