Home Institution
Georgetown University
Publication Date
Fall 2022
Abstract
Sustainable investing and corporate climate action have grown exponentially in the last decade, generating a simultaneous need for customers, investors, and policymakers to determine when companies are genuinely achieving positive impact related to environmental, social, and corporate governance (ESG) factors. As a result, investors are increasingly employing ESG engagement, which typically takes the form of direct communication with holdings to determine and positively shape their impacts on their stakeholders. In this paper, I explore the reasoning for conducting ESG engagement and refute arguments against it. I fill an existing research gap by analyzing the benefits of ESG engagement to both real-world impacts and financial performance, informed by six interviews with professionals in business and sustainable finance. Finally, I offer four solutions to common engagement-related issues––collaborative engagement, sector- and value chain-level engagement, internal best practices for investors, and policymaker engagement––with the ultimate goal of increasing the effectiveness and efficiency of engagement for sustainable investors.
Disciplines
Business and Corporate Communications | Business Law, Public Responsibility, and Ethics | Civic and Community Engagement | Corporate Finance | Portfolio and Security Analysis | Social Justice
Recommended Citation
Meyers, Gillian, "Doing Well by Doing Good: Analyzing the Dynamics and Effectiveness of Corporate Engagement" (2022). Independent Study Project (ISP) Collection. 3526.
https://digitalcollections.sit.edu/isp_collection/3526
Included in
Business and Corporate Communications Commons, Business Law, Public Responsibility, and Ethics Commons, Civic and Community Engagement Commons, Corporate Finance Commons, Portfolio and Security Analysis Commons, Social Justice Commons
Program Name
Switzerland: Banking, Finance, and Social Responsibility