In recent years, there has been a shift in the way people think about finance due to an increasing awareness and concern for issues such as environmental damage, social injustice, and poor governance. Financial decisions that were once made based only on short-term profits and how much wealth a company creates for its shareholders are now being analyzed using a longer-term perspective of the risks and/or opportunities that long-term sustainability issues present. Therefore, Environmental, Social, and Governance (ESG) principles will be essential in order to integrate measurable criteria of sustainability into financial decision-making and business strategies, investment decisions, and risk management practices. An ESG approach provides stakeholders with an all-encompassing understanding of how well a business performs; it takes into account not only the financial returns produced by a business but also how committed that business is to being environmentally responsible, socially responsible to the communities where it operates, and ethical in its corporate governance.
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