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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

Source

PDF report

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