… In ESG’s name the first two letters, E and S, refer to broad areas of great and possibly existential risk both locally and in some cases to civilization as we know it. For example, the long-term value of a corporation would likely be enhanced by reducing climate change induced natural disasters in the future and if there was more general acceptance of diversity and inclusion.
The third letter G relates to the principles of corporate governance which broadly set forth the way in which corporations should be managed.
We will describe in more detail certain of the E and S risks below. We will also later address competing theories about the purpose of proper goals of corporations as well as some of the ways in which corporations may be motivated to help address some of these risks and how the basic principles of corporate governance and corporate purpose fit with ESG.
Source: Guest Post: ESG and Corporate Purpose: Their Current Status and How They Relate | The D&O Diary
