["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nEnvironmental, social, and corporate governance (ESG) reporting has emerged as a key critical dimension of corporate accountability, paralleling the global discourse on sustainable development. The present study investigates the perceived effectiveness of digital ESG reporting from the perspective of managers (human capital) in Indian small‐ and medium‐sized enterprises (SMEs), drawing on the interplay of institutional theory, the technology acceptance model (TAM), and the resource‐based view (RBV). Employing a mixed‐method approach, narrative inquiry was conducted with six managers across five randomly selected firms from the SEBI top‐500 list, complemented by 473 valid survey responses. The study findings reveal that perceived burdensomeness, compliance orientation, and strategic orientation significantly shape managers' evaluations of digital ESG reporting effectiveness, which in turn influences actual ESG outcomes. Moreover, organizational readiness expressed through digital maturity and managerial support (leadership commitment and employee training) emerges as a moderating factor, strengthening the link between perceived and actual effectiveness. This study contributes to ESG literature by integrating multi‐theoretical perspectives to explain reporting dynamics, offering both practical insights for firms navigating ESG mandates and policy implications for regulators.\n"]