Revisiting Corporate Responsibility: From Compliance to Strategic Governance and Reputational Capital in Driving <scp>ESG</scp> Performance in Sub‐Saharan Africa

ABSTRACT This study revisits corporate responsibility by shifting the focus from a compliance‐oriented perspective to a strategic understanding of how governance structures and reputational capital jointly drive environmental, social, and governance (ESG) performance in emerging markets. Anchored in Signaling Theory and the Natural Resource‐Based View (NRBV), we argue that board‐level strategic governance mechanisms function as both internal capability enablers and external credibility signals, whose influence on ESG outcomes is amplified by strong corporate reputation. Using panel data from 347 publicly listed manufacturing firms across the four sub‐regions of Sub‐Saharan Africa (SSA) between 2012 and 2023, we employ the system Generalized Method of Moments (GMM) estimator to mitigate endogeneity, dynamic panel bias, and unobserved heterogeneity. The results show that board independence, gender diversity, ESG expertise, and board tenure significantly and positively influence ESG ratings. Corporate reputation emerges as a critical determinant of ESG performance and a significant moderator that reinforces the effectiveness of governance mechanisms. Sub‐regional heterogeneity analyses reveal that these relationships are stronger in Southern and Eastern Africa, suggesting the role of institutional maturity and varying stakeholder pressures. By integrating governance quality with reputational assets, this study broadens the CSR discourse by demonstrating how firms in turbulent emerging markets can transition from mere compliance to strategically leveraging governance and reputation to enhance ESG outcomes. The findings offer theoretical contributions to the governance–ESG nexus and practical insights for boards, regulators, and investors seeking to improve sustainability performance in SSA's evolving institutional landscape.