["Business Ethics, the Environment &Responsibility, Volume 35, Issue 3, Page 2075-2099, July 2026. ", "\nABSTRACT\nThis study examines how different ownership structures (Indian ownership and institutional ownership) moderate the relationship between Environmental, Social, and Governance (ESG) performance and earnings management. Additionally, it investigates the distinct roles of Indian family and non‐family ownership in influencing this relationship. Using a sample of 224 non‐financial firms listed on the Nifty 500 index from 2013 to 2023, the study employs a two‐way fixed‐effects model to account for unobserved heterogeneity. To ensure robust results, additional robustness checks, including dynamic panel estimation techniques, are used to address concerns related to measurement error, reverse causality, and endogeneity. The findings align with the active monitoring hypothesis, revealing that Indian ownership plays a pivotal role in discouraging unethical financial reporting, as stronger sustainability performance is significantly associated with lower levels of earnings manipulation. However, the presence of institutional investors does not show a meaningful influence in moderating this relationship. These insights contribute to the growing discourse on responsible ownership and ethical corporate governance in emerging markets. By highlighting the unique governance dynamics in India, this study offers new perspectives on how ownership structures can support the institutionalization of sustainability standards and promote corporate accountability.\n"]