Global Corporate Governance

Savannah Technical College **We aren't endorsed by this school
ACC 3140
Nov 7, 2023
Uploaded by SuperHumanMosquitoPerson730 on
Global Corporate Governance Course name: Student Name
Introduction Environment, Social, and Governance (ESG) concepts have risen to the forefront of corporate governance and strategy in the modern business environment due to the confluence of corporate sustainability, ethical responsibility, and financial success. More and more businesses across the globe are realising that environmental, social, and governance (ESG) factors have a significant impact on not just their financial results, but also their dedication to CSR and ethical business practises. This essay examines the far-reaching effects of incorporating ESG considerations into a company's daily operations, illuminating the many ways in which doing so may affect CSR efforts and the firm's dedication to doing business ethically and sustainably. Environmental, social, and governance (ESG) standards provide a holistic framework with the ability to alter a company's approach to ethical business practises. Our goal as we explore the intertwined fields of ESG and CSR is to examine the drivers of ESG adoption and the effects it has had on the field of CSR as a whole. The dynamics that businesses must adapt to in order to reach a more sustainable, ethical, and responsible future are shown by this investigation.
Part 1: Why is Environment, Social, and Governance (ESG) important International commerce now increasingly takes into account environmental, social, and government (ESG) issues. Businesses, their stakeholders, and their long-term survival are increasingly acknowledging the impact that environmental, social, and governance (ESG) factors may have on all three. In this article, we'll go into the reasons why ESG is trending right now, and discuss the forces that have pushed businesses to embrace it. Changing Expectations of Stakeholders The shifting priorities of many stakeholders—including investors, shoppers, employees, and the general public—are driving the growing importance of ESG. More and more individuals in recent decades have placed a premium on environmentally responsible business practises, social accountability, and corporate ethics. Institutional investors and asset managers are placing a greater emphasis on environmental, social, and governance (ESG) factors. They understand the connection between a company's ESG performance and its financial health and long-term viability. Investors place a high value on ESG data since it aids them in weighing the merits and demerits of a possible investment. According to the research (Cheng, Ioannou, & Serafeim, 2014), strong ESG performance is associated with better financial outcomes and lower investment risk. Companies that disclose their ESG data and demonstrate their commitment to operating in a socially and environmentally responsible manner are gaining traction with investors. Customers: With the proliferation of information in the contemporary day, consumers may become well-informed about the companies they patronise. Consumers are getting pickier, only supporting businesses they feel are morally aligned with. Customers may feel more inclined to buy from and remain loyal to businesses that prioritise environmental, social, and governance
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