Featured In
CSR Research Digest – July 2012
Summary
This paper seeks to shed light on stakeholders, taken as a whole, and when they might have a material economic impact on the company and thereby impact valuations. While demonstrating that ESG performance does matter for financial valuation in the near term, the statistical evidence also points a way to long-term business value creation.
Key Findings
- A growing number of stakeholder groups are raising the bar on corporate performance.
- To create value for diverse stakeholders companies must understand the value of environmental, social and governance (ESG) issues to each group.
- Stakeholder perceptions of a company as well as its impact on society and the environment represent an important driver for a firm’s long-term success.
- NGOs, trade unions, social activists and business associations influence a firm’s sustainability strategy and policy.
- Similarly, shareholders are increasingly taking ESG measures into account to determine a company’s valuation.
- Finding the value in ESG management is becoming central to how many companies craft their sustainability strategy.
- Finally, the report describes strategic considerations for engaging with stakeholders in ways that create mutual value.
Author(s)
Deloitte