Insights into stakeholder theory and environmental, social and governance controversies: a systematic literature review and future research agenda

Purpose This study aims to review the use of stakeholder theory in environmental, social and governance (ESG) controversies research over the past 20 years, identifying trends, methods and theories, while highlighting gaps for future research. Design/methodology/approach This review examines 37 articles published from 2004 to 2024 that explicitly use stakeholder theory to address ESG controversies. It uses a systematic literature review and bibliometric analysis, along with performance analysis, science mapping and the Preferred Reporting Items for Systematic Reviews and Meta-Analyses guidelines. Findings This review highlights three research clusters: risk management, corporate governance and financial implications, showing the interdisciplinary growth of stakeholder theory. It reveals a strong use of quantitative methods, the dominance of the USA and European contexts and the integration of stakeholder theory with frameworks such as legitimacy and agency theories. Research limitations/implications This analysis is limited by the small sample size and reliance on Scopus and Web of Science databases. The findings highlight the need for qualitative, mixed methods and broader geographic contexts. Practical implications The findings indicate that policymakers and practitioners should strengthen governance frameworks and enhance stakeholder engagement to reduce ESG controversies, particularly by aligning board oversight, risk management and stakeholder involvement. Social implications This study emphasizes the importance of addressing ESG controversies by aligning corporate practices with stakeholder expectations, increasing transparency and promoting sustainability across regions and sectors. It also highlights the need to strengthen stakeholder accountability and disclosure to boost public trust and align corporate actions with societal standards. Originality/value This study advances ESG research by consolidating fragmented studies, clarifying stakeholder theory’s role in addressing ESG controversies and highlighting underexplored regions, industries and qualitative methods.