Investigating How Geographic Proximity to Tourist Destinations Triggers Corporate ESG Behavior

There is a highly interactive relationship between tourist destination development and local economies, societies, and natural environments. However, it is not yet known whether tourist destinations affect the decision-making of surrounding firms, particularly in terms of the environmental, social, and governance (ESG) behavior closely related to sustainable corporate development. Based on institutional theory and place attachment theory, we find that firms with closer geographic proximity to tourist destinations are more inclined to adopt ESG behavior; transportation convenience strengthens this correlation. We further confirm the mechanisms of institutional pressure and place attachment. Further analysis indicates that geographic proximity to tourist destinations has a stronger impact on the environmental dimension of ESG, a more significant influence on corporate ESG behavior in eastern China, and that the COVID-19 pandemic has weakened the impact of tourist destinations on the ESG behavior of surrounding firms. Our analysis reveals some additional benefits of tourist destinations, expands the research scope of ESG drivers for enterprises, and provides some enlightenment for the development of tourist destinations and their surrounding regions.