Abstract
In response to rising consumer expectations for sustainability, this study examines how Environmental, Social, and Governance (ESG) practices shape brand trust and brand attachment in Vietnam’s retail sector, focusing on private-label brands. Grounded in Stakeholder Theory, data were collected via an online survey of Vietnamese consumers (n = 260 valid responses) and analyzed using PLS-SEM. The results show that ESG practices strongly and positively impact brand trust, and brand trust, in turn, significantly enhances brand attachment. ESG practices also have a positive direct effect on brand attachment. Mediation analysis further indicates that brand trust partially mediates the relationship between ESG and brand attachment, suggesting that trust serves as an emotional bridge through which responsible corporate behavior translates into stronger consumer-brand ties. By extending ESG-branding research to an emerging market private-label context, the study offers actionable insights for retailers seeking to build trust and long-term attachment through credible ESG implementation and communication.
Introduction
In recent years, ESG (Environmental, Social, and Governance) practices have become a fundamental element of corporate strategy, reflecting a broader shift in the global business landscape (Arvidsson & Dumay, 2022; Do & Huang, 2022). The ESG initiatives are widely acknowledged as essential contributors to long-term business success and sustainable development. At the same time, managers face rising concerns over ESG effectiveness, as poorly communicated or perceived ESG efforts may fail to generate consumer trust or even trigger accusations of greenwashing. As a result, understanding how and when ESG practices translate into meaningful consumer responses has become a pressing managerial challenge rather than a purely normative concern.
This challenge is particularly acute in the retail sector, where private-label brands (PLBs) have expanded rapidly as retailers seek greater control over margins and supply chains. Globally, PLBs are increasingly positioned not only as low-price alternatives but also as vehicles for sustainability initiatives, such as eco-packaging, ethical sourcing, and responsible governance. However, unlike national brands, PLBs typically suffer from lower brand equity, limited symbolic value, and higher perceived quality risk, making it difficult for retailers to build consumer trust and emotional attachment (Beneke et al., 2015; Fall Diallo et al., 2013). In this context, ESG practices are increasingly deployed as a strategic tool to offset credibility deficits and reduce perceived risk, yet empirical evidence on whether such strategies actually strengthen consumer-brand relationships remains limited.
The urgency of this issue is especially evident in emerging markets such as Vietnam. Vietnam’s retail sector has grown rapidly, exceeding USD 140 billion and projected to surpass USD 350 billion in the coming years (Ha, 2023; Vo & Van Nguyen, 2022). Despite this growth, private-label products account for only a small share of retail sales compared to developed markets, reflecting persistent consumer concerns over quality and trust (Vietnam Investment Review, 2018). In response, major retailers such as Saigon Co.op and WinCommerce have accelerated the integration of ESG principles into their private-label strategies, promoting sustainable sourcing, food safety, and environmentally responsible production (Saigon Co.op, 2025; Vietnam Investment Review, 2024). These initiatives suggest that ESG is already being utilized in practice as a trust-building mechanism for private-label brands, although its effectiveness in shaping consumer attachment has yet to be empirically established.
From an academic perspective, existing ESG and branding research has primarily examined national brands and developed markets, offering limited guidance for retailers operating low-equity, value-oriented brands in emerging economies (Hasan et al., 2024; Lee & Rhee, 2023). Numerous empirical studies have investigated the impact of ESG on various aspects, including customer behavior, financial performance, and brand value. Hasan et al. (2024) and Tripopsakul and Puriwat (2022) found that ESG activities positively influence customer engagement, brand trust, and purchase intention. Zou et al. (2025) also confirmed that ESG enhances brand value directly and indirectly through communication, especially for large enterprises. Aydoğmuş et al. (2022), using Tobin’s Q and ROA indicators, revealed a significant positive relationship between composite ESG scores and firm value and profitability, particularly in the social and governance dimensions. However, prior studies often focus on direct ESG outcomes without adequately explaining the psychological mechanisms through which ESG initiatives may reduce perceived risk and foster deeper emotional outcomes such as brand attachment. In particular, the mediating role of brand trust through which ESG-related ethical evaluations may be converted into enduring consumer-brand relationships still remains insufficiently explored.
For these reasons, the study aims to address this practical and theoretical gap by examining the relationship between ESG practices and brand attachment, with a particular focus on the mediating role of brand trust, in the context of private-label brands in Vietnam. By investigating a market where retailers are actively deploying ESG strategies for private labels under conditions of high perceived risk and low brand equity, this study offers timely insights into whether ESG practices can effectively enhance consumer trust and attachment. The findings aim to inform both theory and managerial practice by clarifying how ESG initiatives can be leveraged to build sustainable consumer-brand relationships in emerging retail markets.
The remainder of this paper proceeds as follows. The next section reviews relevant literature and develops hypotheses. We then describe the methodology and analytical procedures. Next, we present the results and discussion. Finally, we summarize the findings, outline theoretical and managerial implications, and conclude with limitations and future research directions.
Literature Review & Hypothesis Development
Private-Label Brands (PLBs)
Private-label brands (PLBs), also known as retailer or store brands, have become a central pillar of retail strategy across developed and emerging markets. PLBs are exclusively designed and marketed under a specific retailer’s brand, often manufactured by third-party suppliers but tailored to the retailer’s unique value proposition (Beneke & Carter, 2015). This distinction enables retailers to exert greater control over pricing, branding, and increasingly, sustainability governance. Compared to manufacturer or national brands (those created, owned, and distributed by producers), PLBs offer retailers greater strategic flexibility. National brands are typically managed independently of any particular distribution channel and focus on mass-market visibility, advertising, and building broad brand equity. In contrast, PLBs are primarily managed by retailers and benefit from streamlined supply chains, direct access to consumer behavior data, and in-house marketing leverage (Rossi et al., 2015). This vertical integration enables retailers to experiment with sustainable sourcing, eco-packaging, and ethical labor practices as part of their ESG strategy.
Despite their strategic advantages in pricing flexibility and supply chain control, PLBs often continue to face lower perceived credibility and weaker emotional resonance than national brands. Recent research shows that consumers tend to associate national brands with stronger reputational capital, quality assurance, and symbolic value, whereas PLBs are more frequently evaluated under conditions of information asymmetry and heightened perceived risk, particularly in emerging markets where institutional trust and market transparency remain limited (Beneke et al., 2015; Fall Diallo et al., 2013).
This trust deficit constrains PLBs’ ability to develop enduring emotional bonds, as brand attachment typically requires perceptions of integrity, reliability, and long-term commitment (Japutra et al., 2018a). Consequently, scholars argue that PLBs must rely on alternative trust-building mechanisms beyond price and functionality. In this context, ESG practices function as salient market-based signals that communicate ethical orientation, transparency, and managerial competence, thereby reducing perceived risk and mitigating information asymmetry (Bachmann et al., 2015; Bae et al., 2023; Lee & Rhee, 2023).
ESG Practices
Environmental, Social, and Governance (ESG) standards have become vital non-financial indicators that shape corporate responsibility and long-term sustainability. The environmental (E) dimension pertains to how firms address their ecological impact, encompassing actions like sustainable resource use, emission reduction, and compliance with environmental laws (Arvidsson & Dumay, 2022). The social (S) pillar relates to how companies interact with stakeholders, including employees, consumers, suppliers, and the broader society. Firms demonstrating strong social responsibility tend to earn greater consumer trust through visible commitments to ethical conduct and societal welfare (Martínez & Rodríguez del Bosque, 2013). Governance (G) involves ethical leadership and organizational transparency, covering board diversity, ethical adherence, regulatory alignment, and risk oversight mechanisms (Tiep Le et al., 2023). Robust governance frameworks enhance a company’s credibility and reinforce stakeholder trust (Arvidsson & Dumay, 2022).
Beyond their operational and compliance-related implications, ESG practices increasingly function as market-based signals that convey firms’ ethical orientation, transparency, and long-term strategic commitment. From a signaling theory perspective, ESG disclosures allow firms to communicate unobservable qualities, such as integrity, responsibility, and managerial competence, to external stakeholders, thereby reducing information asymmetry and perceived risk (Connelly et al., 2011). Recent studies suggest that in consumer-facing industries, particularly retailing, ESG initiatives serve as credible extrinsic cues that help consumers infer brand reliability and corporate intentions in contexts characterized by limited information and trust deficits (Bachmann et al., 2015; Martínez & Rodríguez del Bosque, 2013). This signaling function is especially salient for private-label brands, where consumers often lack extensive brand heritage or quality assurance mechanisms and therefore rely more heavily on ESG-related signals when forming evaluations of trust and risk (Bae et al., 2023; Lee & Rhee, 2023).
Stakeholder Theory
Stakeholder Theory, introduced by Freeman (2015), posits that businesses must consider all stakeholders, not just shareholders, for sustainable success. Within this framework, consumers represent a critical stakeholder whose perceptions and evaluations significantly shape firms’ relational and reputational outcomes. In the context of ESG, stakeholder-oriented strategies reflect firms’ commitments to balancing economic, social, and environmental responsibilities in ways that align with stakeholder expectations and long-term value creation (Mahajan et al., 2023)
Recent ESG literature increasingly applies Stakeholder Theory to explain why firms engage in sustainability initiatives and how such engagement influences stakeholder responses. Empirical studies show that stronger stakeholder engagement leads to more substantive ESG practices and enhanced organizational credibility (Hussain et al., 2018), while inconsistencies between ESG disclosures and actual performance undermine stakeholder trust and market valuation (García-Sánchez et al., 2021). Further evidence suggests that ESG engagement enhances firm value and reputational capital by addressing stakeholder concerns and signaling long-term commitment (Cabaleiro-Cerviño & Mendi, 2024; Huang, 2022). Importantly, recent consumer-focused research demonstrates that stakeholder-centered ESG strategies positively influence brand-related outcomes such as trust, brand equity, and loyalty (Hasan et al., 2024).
Accordingly, this study adopts Stakeholder Theory as its overarching theoretical framework to explain why private-label retailers invest in ESG practices to strengthen relationships with consumers. However, while Stakeholder Theory provides a macro-level rationale for ESG engagement, it does not fully explain how consumers cognitively interpret ESG initiatives and translate them into psychological responses. To address this limitation, the study primarily draws on signaling theory to explain how ESG practices function as informational cues that reduce information asymmetry (Connelly et al., 2011). To strengthen the explanatory depth, the analysis is further informed by risk perception models, trust-transfer mechanisms, and ethical value signaling literature, which together elucidate how ESG practices foster brand trust and ultimately translate into stronger brand attachment (Bachmann et al., 2015; Fatma et al., 2015; Japutra et al., 2018b; Martínez & Rodríguez del Bosque, 2013).
Brand Trust
Brand trust is vital in building strong customer relationships, enhancing loyalty, and fostering enduring consumer connections (Tripopsakul & Puriwat, 2022). Suggested by Delgado-Ballester and Luis Munuera-Alemán (2005), it represents the belief that a brand is dependable and consistently prioritizes customer interests. In the retail sector, Vo and Van Nguyen (2022) describe trust as a multidimensional construct encompassing consumer perceptions of the benevolence, competence, and integrity demonstrated by a retailer. Benevolence suggests that the retailer acts with genuine concern rather than self-interest; competence indicates its capacity to fulfill promises and meet expectations; and integrity refers to honesty and accountability in business practices.
In the context of ESG, brand trust emerges as a consumer’s evaluative response to perceptions of an organization’s ethical consistency, transparency, and responsibility. Drawing on signaling theory, ESG initiatives function as credible signals of managerial integrity and benevolence, enabling consumers to infer a firm’s underlying intentions and governance quality in situations characterized by information asymmetry (Connelly et al., 2011). By signaling adherence to ethical standards and long-term stakeholder commitment, ESG practices help reduce perceived opportunism and uncertainty, which are key inhibitors of trust formation (Bachmann et al., 2015; Martínez & Rodríguez del Bosque, 2013). Recent empirical studies further confirm that firms with strong ESG performance are perceived as more reliable and trustworthy, as consumers interpret sustainability-oriented actions as evidence of honesty, accountability, and concern for stakeholder welfare (Fatma et al., 2015; Lee & Rhee, 2023). Accordingly, ESG practices play a crucial role in enhancing consumers’ confidence in a brand’s reliability, particularly in retail contexts where trust is not readily established by a strong brand heritage or prior experience. Hence, the following hypothesis is proposed to examine:
Brand Attachment
Brand attachment refers to the emotional and cognitive bond between a consumer and a brand, where the brand becomes part of the consumer’s self-identity (Park et al., 2008). This bond encompasses affection, passion, and self-brand connection, leading consumers to allocate time, money, and effort to maintain the relationship (Thomson et al., 2005). Empirical evidence shows that brand attachment drives behaviors such as repeat purchases, premium price acceptance, loyalty, advocacy, and even defensive actions to protect the brand (Park et al., 2010; Thomson et al., 2005).
Brand trust plays a central role in forming brand attachment, serving as a cognitive and emotional foundation for enduring consumer-brand relationships. When consumers perceive a brand as reliable, benevolent, and acting in their best interests, trust creates a sense of psychological safety that reduces relational uncertainty and facilitates emotional openness (Huaman-Ramirez & Merunka, 2019; Japutra et al., 2014). This psychological safety enables trust to transfer from an evaluative judgment into a deeper affective bond, allowing consumers to integrate the brand into their self-concept, which is a defining characteristic of brand attachment (Japutra et al., 2018a, 2018b).
Prior empirical research consistently supports the linkage between trust and attachment. Frasquet et al. (2017) demonstrate that consumers are more likely to develop emotional attachment to brands perceived as dependable and benevolent, while Rammile (2015) shows that trust significantly strengthens consumers’ emotional ties and relational commitment to brands. In contexts characterized by greater perceived risk and limited brand heritage, such as private-label brands, brand trust becomes particularly critical, as it substitutes for symbolic cues and reassures consumers of relational stability. Accordingly, higher levels of brand trust are expected to foster stronger emotional bonds and attachment. Based on this, we propose the hypothesis:
Relationship Between ESG Practices and Brand Attachment
Beyond their role in reducing risk and fostering trust, ESG practices can also exert a direct influence on brand attachment through ethical value signaling and identity-based mechanisms. Prior research suggests that consumers increasingly seek alignment between their personal values and the ethical stance of the brands they consume. When firms engage in visible and authentic ESG initiatives, consumers may perceive value congruence and moral alignment with the brand, which strengthens self-brand identification and emotional attachment (Bhattacharya & Sen, 2004; Martínez & Rodríguez del Bosque, 2013). In this sense, ESG practices enable consumers to derive emotional and symbolic benefits from consumption, fostering attachment even in the absence of extensive brand heritage, which is an effect particularly relevant for private-label brands.
Recent empirical evidence supports a direct relationship between sustainability-oriented practices and attachment-related outcomes. Studies show that environmental and social initiatives enhance consumers’ emotional engagement and attachment by evoking feelings of pride, empathy, and moral satisfaction (Hasan et al., 2024; Lee & Rhee, 2023). Accordingly, ESG practices may directly strengthen consumers’ emotional bonds with private-label brands by signaling shared values and ethical commitment, leading to stronger brand attachment. Bhattacharya and Sen (2004) emphasized that corporate social initiatives can create identity alignment between consumers and companies, resulting in deeper consumer-brand relationships. These findings suggest that ESG implementation fulfills regulatory and ethical expectations and plays a crucial role in shaping long-term emotional bonds between consumers and brands. Therefore, the research proposes the following hypothesis:
The Mediating Effect of Brand Trust
Although ESG practices may directly evoke emotional responses, their influence on brand attachment is largely contingent upon the formation of brand trust. Brand trust serves as a critical psychological mechanism through which consumers translate evaluations of a firm’s ethical conduct and social responsibility into enduring emotional bonds. In the context of ESG, sustainability-oriented initiatives function as signals of integrity, transparency, and long-term commitment, which reduce perceived risk and opportunism and thereby foster trust (Bachmann et al., 2015; Martínez & Rodríguez del Bosque, 2013).
Once established, brand trust facilitates a trust-transfer process, whereby cognitive and moral evaluations of a brand’s reliability and benevolence evolve into affective attachment. Trust creates a sense of relational security and psychological safety that allows consumers to emotionally invest in the brand and integrate it into their self-concept, a defining feature of brand attachment. This mechanism is particularly salient in private-label contexts, where limited brand heritage and higher perceived risk make trust a necessary precondition for emotional bonding.
Empirical evidence supports this mediating role of brand trust. Tripopsakul and Puriwat (2022) demonstrate that brand trust mediates the relationship between ESG initiatives and customer engagement, while Tripopsakul and Puriwat (2023) show that trust transmits the effects of ESG performance to brand equity. Similarly, prior CSR research indicates that ethical and social initiatives enhance relational outcomes primarily by strengthening trust and favorable brand evaluations (Fatma et al., 2015). Collectively, these findings suggest that brand trust constitutes a central conduit through which ESG practices are converted into stronger brand attachment. For this foundation, the research suggests the following hypothesis:
Methodology
Measurement
All constructs in Figure 1 were measured using established multi-item scales adapted to the Vietnamese retail private-label context (As shown in Table 1). ESG was operationalized as consumers’ perceived ESG practices, with three dimensions: Environmental (E), Social (S), and Governance (G). Meanwhile, brand trust and brand attachment captured consumers’ relational evaluations of the focal brand. Brand trust and brand attachment were modeled as reflective constructs, whereas ESG was specified as a higher-order construct formed by the three dimensions to reflect its multidimensional nature. All items used a 5-point Likert scale ranging from 1 (Strongly Disagree) to 5 (Strongly Agree). To support construct validity, the questionnaire was translated from English into Vietnamese and then independently translated back into English by a separate bilingual translator who had not seen the original version. The back-translated version was compared with the original English instrument to identify discrepancies, and wording was refined to preserve semantic equivalence and natural Vietnamese expression. The revised Vietnamese questionnaire was then pilot-tested with a small group of eligible respondents to check clarity, comprehension, and completion time. Minor wording adjustments were made based on pilot feedback before the main survey.
The proposed research model.
Measurement Items.
Sample and Data Collection
The survey was distributed to Vietnamese consumers through widely used social media channels, specifically Facebook and Zalo. Eligibility screening ensured respondents were Vietnamese consumers aged 18 or above with relevant experience purchasing or using a retailer’s private label brand. Participation was voluntary and anonymous to reduce evaluation apprehension and encourage candid responses. For data quality, we removed incomplete responses and retained only fully completed questionnaires for analysis. Of the 333 surveys collected, 260 were deemed valid, yielding a valid response rate of 78.08%. Female respondents accounted for the majority (60%), followed by males (35.8%), while 4.2% did not disclose gender. The sample skewed younger, with 50.4% aged 18 to 23 and 22.3% aged 24 to 29. Only 13.5% were 30 to 35 years old, while older age groups (36 and above) made up 13.8%. Educationally, most respondents held either a high school degree (45%) or a bachelor’s degree (43.5%), with smaller portions holding a master’s degree (7.7%) or a doctoral degree (3.8%). Income-wise, most of the 260 respondents reported monthly earnings below 20 million VND, with 25.8% earning less than 5 million VND, 28.5% earning between 5 and 10 million VND, and 25.8% earning between 10 and 20 million VND. In contrast, higher-income groups were less common, including 8.1% in the 20 to 30 million VND range and 11.9% earning over 30 million VND per month.
Data Analysis
The research model was tested using partial least squares structural equation modeling in SmartPLS 4, which is effective in modeling complex relationships with latent variables and higher-order constructs (J. F. M. Hair et al., 2022). A disjoint two-stage approach was used to estimate ESG, first validating the three lower-order dimensions and then using their latent scores to form the higher-order ESG construct in the structural model (Becker et al., 2012, 2023; Sarstedt et al., 2019). Reflective measurement quality was assessed through indicator loadings, internal consistency reliability using Cronbach’s alpha and composite reliability, convergent validity using average variance extracted, and discriminant validity using the Heterotrait-Monotrait ratio and Fornell-Larcker criterion. For the higher-order ESG construct, multicollinearity was examined using variance inflation factors and the significance and relevance of formative weights were assessed via bootstrapping. Structural relationships, including mediation, were evaluated using bootstrapping with 5,000 resamples, reporting path coefficients, p-value, explained variance, effect sizes, and predictive relevance. Mediation analysis followed J. F. M. Hair et al. (2022) and Zhao et al. (2010), using bootstrapping to test indirect effects and VAF to determine the type of mediation.
Common Method Bias Checks
Common method bias was assessed using both procedural and statistical remedies. Procedurally, the survey ensured anonymity and used neutral item wording to reduce evaluation apprehension. Statistically, we applied two diagnostics. First, we examined inner VIF values and found that all were low, ranging from 1.000 to 2.388 (as shown in Table 6), indicating that common method bias is unlikely to be a serious concern. Second, we conducted Harman’s single-factor test using an unrotated principal component analysis of all measurement items via SPSS 26. The first factor accounted for less than 50%, suggesting that common method bias did not significantly dominate the measures.
Results
The Measurement Model Assessment – Stage 1
Following Sarstedt et al. (2019), the first stage in the disjoint two-stage approach for higher-order modeling in PLS-SEM involves assessing the measurement models of the lower-order components (LOCs) of the second-order construct ESG, including Environmental (E), Social (S), and Governance (G). Additionally, the measurement models of Brand Trust and Brand Attachment are examined.
To assess indicator reliability, all outer loadings of reflective items were examined. Loadings above 0.708 indicate that the latent construct explains over 50% of the indicator’s variance (J. F. M. Hair et al., 2022). All items loaded above 0.70 and were statistically significant (see Figure 2). Internal consistency was assessed via Cronbach’s alpha and Composite Reliability. As shown in Table 2, all constructs exceeded the minimum threshold of 0.70, suggesting strong reliability (Henseler et al., 2015). All constructs showed AVE values > 0.50 threshold (Fornell & Larcker, 1981), confirming sufficient convergent validity.
The measurement model – Stage 1.
Result Summary for Stage 1 of Measurement Model.
Note. ESG = Environmental, Social, and Governance Practices; BT = Brand Trust; BA = Brand Attachment.
Discriminant validity was established using the Fornell–Larcker criterion and the Heterotrait–Monotrait ratio (HTMT) proposed by Henseler et al. (2015). All constructs satisfied the Fornell–Larcker criterion, as the square root of their AVE exceeds their highest correlation with other constructs (See Table 3). HTMT values were under the 0.9 limit, confirming discriminant validity (See Table 4).
Fornell and Larcker’s Criterion for Stage 1 of Measurement Model.
Note. ESG = Environmental, Social, and Governance Practices; BT = Brand Trust; BA = Brand Attachment. Bold diagonal values represent the square roots of AVE, while off-diagonal values represent inter-construct correlations.
HTMT Criterion for Stage 1 of Measurement Model.
Note. ESG = Environmental, Social, and Governance Practices; BT = Brand Trust; BA = Brand Attachment.
The Measurement Model Assessment – Stage 2
To model ESG as a reflective-formative higher-order construct (HOC), the disjoint two-stage approach was employed, consistent with recommendations from Sarstedt et al. (2019) and Becker et al. (2023). In this approach, only the latent variable scores of the three LOCs (Environmental, Social, and Governance) obtained from the first-stage model were then used as formative indicators to construct the ESG higher-order construct in the second stage. Because the ESG is conceptualized formatively, the relationships between ESG and its LOCs were interpreted as formative weights, and the assessment focused on convergent validity, collinearity, and the significance and relevance of these weights (J. F. M. Hair et al., 2022).
Based on the results in Table 5, the formative second-order construct (ESG practices) demonstrates adequate measurement quality and supports the validity of the higher-order specification. The redundancy analysis shows a path coefficient of 0.882 (p < .001), exceeding the commonly accepted threshold of 0.70. This indicates strong convergent validity for the formative higher-order construct and confirms that the second-order construct captures the same conceptual domain as its global criterion measure.
Assessment of Formative Second-Order Constructs.
Note. LOC = lower order construct; LV = latent variable; E = environmental; S = social; G = governance. Redundancy coefficient is the path from ESG (second order) to a global criterion item. Outer weights and loadings show relative and absolute contributions. VIF indicates collinearity.
p < .001.
The relevance and contribution of the lower-order components (Environmental, Social, and Governance) were assessed through their outer weights. All three LOCs exhibit statistically significant outer weights, indicating that each dimension makes a unique contribution to forming ESG practices. Specifically, Environmental shows a positive and significant weight (0.198; t = 2.245; p = .025), while Social (0.491; t = 6.179; p < .001) and Governance (0.458; t = 4.440; p < .001) contribute more strongly. These findings suggest that, although all dimensions are important, Social and Governance represent the most influential components in shaping the overall ESG practices construct in this sample.
In addition, the outer loadings for Environmental (0.792), Governance (0.891), and Social (0.888) are high, providing further evidence of the substantive importance of each LOC in explaining the formative second-order construct. Finally, collinearity diagnostics indicate no multicollinearity issues among the formative indicators, as VIF values range from 1.969 to 2.008, which is well below conservative cut-offs (<3.3). Overall, these results provide strong support for the validity of ESG practices as a formative second-order construct (Sarstedt et al., 2019).
Structural Model Assessment
The structural model was evaluated using several key criteria, including multicollinearity assessment, path coefficient significance, effect size (f2), R2 values, and indirect effects. First, all Variance Inflation Factor (VIF) values for predictor constructs in Table 6 were below 3.3, indicating the absence of problematic multicollinearity (J. F. Hair et al., 2019).
VIF Result.
Note. ESG = Environmental, Social, and Governance Practices; BT = Brand Trust; BA = Brand Attachment.
As reported in Table 7 and Figure 3, Hypothesis H1 was supported, indicating a strong and statistically significant positive effect of ESG practices on brand trust (β = .762, p = .000, f2 = 1.388). Hypothesis H2 was also supported, showing that brand trust positively and significantly predicts brand attachment (β = .631, p = .000, f2 = 0.445). In terms of explanatory power (Table 8), the model explains a substantial proportion of variance in brand attachment (R2 = .625) and brand trust (R2 = .581). The model also demonstrates strong predictive relevance, with positive Q2 values for both brand attachment (Q2 = 0.440) and brand trust (Q2 = 0.367), exceeding the recommended threshold of zero (J. F. M. Hair et al., 2022). In addition, Hypothesis H3 was accepted, confirming a significant yet comparatively weaker direct effect of ESG practices on brand attachment (β = .196, p = .003, f2 = 0.043).
Hypothesis Testing Results.
Note. Coef = β; f2 = effect size; VAF = mediation size. Accepted: p < .05.
Results of the structural model.
Explanatory Power and Predictive Relevance of Endogenous Constructs.
Note. BT = Brand Trust; BA = Brand Attachment.
In this study, brand trust is hypothesized to mediate the effect of ESG practices on brand attachment, especially for private-label brands, which often face greater scrutiny regarding quality and ethics due to their lower brand equity. The analysis followed J. F. M. Hair et al. (2022) and Zhao et al. (2010) using the bootstrapping method with 5,000 resamples to calculate the specific indirect effect and its significance. The mediation type was determined using the Variance Accounted For (VAF) index: VAF > 80% full mediation, 20% to 80% partial mediation, and <20% no mediation. As shown in Table 7, Brand Trust significantly mediates the relationship between ESG practices and Brand Attachment, with a strong indirect effect (β = .481, p < .001). The VAF is 71.04%, indicating that most of the total impact of ESG on attachment is transmitted through trust, while a smaller direct effect remains, supporting partial mediation (J. F. M. Hair et al., 2022; Zhao et al., 2010).
Model fit was reported to enhance transparency in evaluating the PLS-SEM results. As shown in Table 9, the standardized root mean square residual (SRMR) is 0.054 for both the saturated and estimated models, indicating a small discrepancy between the observed and model-implied correlations and suggesting an acceptable overall fit. The normed fit index (NFI) is 0.894, which is close to the commonly cited benchmark of 0.90 and therefore indicates a satisfactory level of fit, given the complexity of the model and the PLS SEM setting. In addition, the exact fit measures d_ULS (0.269) and d_G (0.155) are low, providing further support that the proposed model reasonably well reproduces the empirical correlation structure. Together, these indices suggest that the specified measurement and structural model offer an adequate representation of the data and provide a reliable basis for interpreting the path relationships reported in the structural model results.
Model Fit Indices.
Note. SRMR = standardized root mean square residual; d_ULS = squared Euclidean distance; d_G = geodesic distance; NFI = normed fit index.
Discussion
The results of this study confirm a significantly positive relationship between ESG practices and brand trust. This highlights the decisive role of ESG in shaping consumer trust. A plausible explanation for this strong association is that, in private-label settings, consumers often face higher uncertainty about product quality and retailer accountability, so ESG serves as a highly diagnostic signal of credibility and responsible conduct. This interpretation is consistent with Iglesias et al. (2020), who argue that ethical corporate behavior strengthens trust when it is perceived as authentic and aligned with consumer values. Similarly, Tripopsakul and Puriwat (2023) confirm that ESG significantly impacts customer trust and brand reputation in ASEAN, with trust mediating brand equity. Notably, the higher-order ESG results indicate that governance contributes more strongly to overall ESG perceptions than the environmental dimension, which is theoretically consistent because governance cues such as compliance, transparency, and ethical prioritization map directly onto integrity and accountability, the core foundations of trust. By contrast, environmental actions may be less visible or less verifiable at the point of purchase, making them less diagnostic for trust formation unless supported by clear evidence and tangible changes. Culturally, Vietnamese consumers value integrity, sincerity, and social contribution. Responsible brands that demonstrate accountability and a community-oriented approach in collectivist settings are more likely to earn lasting trust. Thus, integrating ESG into brand strategy is both a business imperative and a culturally aligned pathway for building trust in Vietnam’s retail sector.
A strong and statistically significant positive association between brand trust and brand attachment is supported, reflecting cultural influences, particularly in contexts where trust and reliability form the foundation of interpersonal relationships, aligning with prior research showing that higher trust strengthens emotional bonds with brands (Wen et al., 2019). Frasquet et al. (2017) also confirmed that trust enhances brand loyalty and attachment, especially in multichannel retail settings. Additionally, Asif et al. (2024) emphasized that brand attachment significantly drives purchase intention, underscoring the importance of retailers in fostering trust through practical ESG efforts. Within Vietnam’s retail landscape, this strong relationship reinforces the cultural significance of trust, where consumers are more inclined to connect emotionally with brands perceived as dependable and reflective of their values. The explanatory power of ESG practices and brand trust on brand attachment through the results further underscores their pivotal roles in shaping consumer-brand relationships.
Moreover, a statistically significant but weaker direct relationship between ESG practices and brand attachment is demonstrated. While ESG positively influences attachment, the modest strength suggests that ESG alone may not create deep emotional bonds unless it is translated into perceived trust and sustained value congruence over time. This aligns with Bae et al. (2023), who found that ESG improves brand evaluations but affects attachment more indirectly via trust or satisfaction. In Vietnam, attachment is likely to develop when ESG is consistently enacted and communicated in ways that resonate with social expectations, rather than through one-time sustainability claims. Accordingly, retailers should implement ESG initiatives and reinforce them with visible, credible, and socially meaningful practices to convert trust into stronger consumer brand attachment.
Furthermore, the result of the mediation test (VAF index) indicates that most of the total impact of ESG on attachment is transmitted through trust, while a smaller direct effect remains, supporting partial mediation (J. F. M. Hair et al., 2022; Zhao et al., 2010). Practically, this means ESG initiatives are most effective for private-label brands when they first strengthen consumers’ confidence in the retailer’s integrity and reliability, which then translates into a deeper emotional bond. In Vietnam’s retail market, where major retailers are scaling private labels, the pathway implies that visible and credible ESG, especially governance and responsibility cues, should be prioritized to build trust as the key bridge from responsible practices to long-term brand attachment.
Conclusion
Main Findings
This study examined how consumers’ perceptions of ESG practices influence brand trust and brand attachment in Vietnam’s private-label brands. The results indicate that ESG practices have a significant positive impact on brand trust, and that brand trust, in turn, has a strong predictive value for brand attachment. The direct ESG to attachment path is significant but modest, while the indirect effect through trust is substantial, accounting for 71.04% of the total effect. The model explains a meaningful share of variance in both brand trust and brand attachment.
Theoretical Implications
First, the findings extend consumer-based ESG branding research to an emerging market retail setting, where private-label brands are perceived as carrying a higher risk and a lower legacy reputation. The significant ESG to trust effect suggests that, in this context, ESG primarily functions as a credibility signal that reduces uncertainty and supports trust formation, which then becomes the dominant pathway to attachment.
Second, by modeling ESG as a higher-order construct composed of environmental, social, and governance dimensions, this study shows that ESG is not interpreted uniformly by consumers. The formative weights indicate that social and governance contribute more strongly to overall perceived ESG than environmental practices. This provides a more precise theoretical account of what drives perceived ESG in retail, where governance-related cues map directly onto integrity, compliance, and accountability, which are core antecedents of trust.
Third, the partial mediation finding clarifies how ESG strengthens long-term consumer–brand relationships. ESG may foster brand attachment directly by creating a sense of value alignment between consumers and the brand. However, its stronger influence occurs indirectly through building brand trust. In other words, ESG is most likely to generate durable attachment when consumers perceive ESG efforts as credible and consistently implemented, because this credibility provides the relational security needed for deeper emotional bonding.
Practical Implications
The findings suggest several practical actions for retailers seeking to build trust and long-term attachment through credible ESG implementation and communication. Firstly, for retailers seeking to strengthen private-label brands in Vietnam, the results imply a credibility-first ESG strategy that ESG should not be treated as a peripheral CSR activity but as a core trust-building infrastructure in private-label strategy. Given that governance exerts the strongest influence on ESG perceptions, retailers should reallocate strategic resources toward systems that institutionalize transparency and accountability. This includes investing in digital traceability platforms, third-party certifications, publicly accessible compliance dashboards, and formalized grievance redressal mechanisms. Such governance signals function as credibility anchors that reduce perceived risk in private-label consumption.
Moreover, because ESG affects brand attachment primarily through trust, managers should adopt a sequential communication strategy. Rather than immediately leveraging ESG for emotional branding appeals, retailers should first emphasize reliability cues, consistency in quality assurance, and evidence-based sustainability reporting. Once trust is established, ESG narratives can then be reframed toward shared values and identity alignment to deepen attachment. This phased approach is particularly relevant in emerging markets such as Vietnam, where skepticism toward sustainability claims remains prevalent.
Finally, from a competitive standpoint, the findings imply that governance-driven ESG differentiation may offer stronger defensibility than environmental symbolism alone. Retailers that institutionalize visible compliance systems can create entry barriers and reputational capital that are difficult for competitors to imitate quickly. Therefore, ESG should be embedded into brand governance structures rather than limited to marketing campaigns.
Limitations and Future Research
Despite its contributions, this study has several methodological and contextual limitations that provide directions for future research. First, the research design is cross-sectional and relies on self-reported perceptions, which limits causal inference and may inflate relationships due to common source and same time measurement. Although statistical checks indicate that common method bias is unlikely to be severe, future studies could strengthen internal validity by separating measurement sources or introducing temporal separation between predictors and outcomes.
Second, data were collected through an online survey distributed via social media platforms using a non-probability convenience sampling strategy. While this approach enabled efficient access to private label consumers, it may introduce self-selection and coverage bias and limit representativeness. The sample is skewed toward younger and more digitally active respondents, who may differ from other age groups in sustainability awareness, familiarity with ESG communication, and the criteria used to evaluate retailer credibility. Therefore, the findings are most applicable to digitally engaged consumers rather than the broader population of Vietnamese retail shoppers.
Third, the study focuses exclusively on private label brands in Vietnam. ESG perceptions, trust formation, and attachment processes may vary across institutional settings, retail formats, and cultural contexts. As a result, the external validity of the findings beyond this specific market context should be interpreted with caution.
Future research could address these limitations in several ways. Scholars may adopt stratified or mixed-mode sampling strategies that deliberately balance age groups and include both online and offline data collection, such as surveys conducted at modern trade outlets, to improve representativeness. Longitudinal designs or experimental approaches could help establish causal relationships more convincingly. In addition, combining perceptual measures with objective indicators such as third-party certifications, disclosure quality assessments, traceability evidence, or retailer-level compliance signals would reduce single-source bias and enhance measurement robustness. Finally, comparative studies across product categories with different risk levels and across consumer segments with varying sustainability involvement and regulatory trust would clarify whether governance remains the most influential ESG dimension under different market conditions.
Footnotes
Acknowledgements
We gratefully acknowledge our co-authors for their contributions and extend sincere thanks to all those who have supported and contributed to the completion of this research.
Ethical Considerations
The research committee of the University of Finance – Marketing approved the proposal for this study on May 12, 2025. Participants received a clear explanation of the study’s purpose before taking part. Data were collected electronically; participation was entirely voluntary, and respondents could skip any question or withdraw at any time without giving a reason. All responses were handled confidentially and used only in aggregate for research purposes.
Consent to Participate
Participation proceeded only after electronic informed consent. The survey began with a concise consent statement (purpose, procedures/duration, voluntary nature, confidentiality, and data use). Respondents indicated consent by selecting “I agree to participate”; no data were recorded without consent, and no personally identifiable information was collected.
Funding
The authors disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: This study was funded by University of Finance – Marketing, Ho Chi Minh City, Vietnam, under Decision No. 1487/QD-DHTCM-QLKHHTQT dated May 12, 2025.
Declaration of Conflicting Interests
The authors declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Data Availability Statement
Data will be made available at a reasonable request from the first author.