Jump to navigation
  • News Feed
  • Services
    • 3BL Professional
    • Sponsored Series
    • 3BL CSRwire
    • ReportAlert
    • Green Bond Alert
    • Special Announcement
    • Custom Webcasts
  • Community
    • TriplePundit
    • 3BL Forum
    • CEO of the Year Awards
    • 100 Best Corporate Citizens
  • About
    • Who We Are
    • Contact Us
  • Subscribe
  • Search
  • News Feed
  • Services
    • 3BL Professional
    • Sponsored Series
    • 3BL CSRwire
    • ReportAlert
    • Green Bond Alert
    • Special Announcement
    • Custom Webcasts
  • Community
    • TriplePundit
    • 3BL Forum
    • CEO of the Year Awards
    • 100 Best Corporate Citizens
  • About
    • Who We Are
    • Contact Us
  • Subscribe
  • Search

Search form

Header Nav

  • Login

ESG Meets Fiduciary Duty at the Bottom Line

Get Embed Code
Nov 5, 2015 4:00 PM ET

ESG Meets Fiduciary Duty at the Bottom Line

“There is one and only one social responsibility of business–to use its resources and engage in activities designed to increase its profits.” So goes the famous statement by the Nobel Prize-winning economist, Milton Friedman, about the purpose of business. Until recently, it has stood as the most quoted of corporate commandments. Now, that’s changing. I’m John Howell for 3BL Media.

Until recently, a corollary of the “profits are all” belief was that integrating ESG factors into business models ran counter to what was defined as fiduciary duty. That is, increasing profits would be hindered by the extra expense of ESG practices. Today, that thinking has been reversed. Failure to include ESG factors in reporting and accounting can lead to substantial costs. Also, companies can miss out on additional revenue opportunities open to those who include ESG issues as part of their business operations and brand positioning.

Today’s investors, from asset managers to pension funds, include evaluations of a company’s integration of ESG factors in their analysis of its bottom line and in investment decision making. ESG is now part of the standard definition of fiduciary duty for any well-governed company.

 

 

 

Episode Sources: 

Lawyers for Better Business

CSR

Archive

Employee Dis-Engagement: Sabbaticals Benefit Workers and Companies
Jul 25 2016 - 6:00pm
Strategy and Practice: Mars Reports on Targets and Issues
Jul 18 2016 - 5:05pm
Transparency at Stake in Hospital Ratings Debate
Jul 11 2016 - 7:15pm
Green Bond Action Heats Up Global Investment Market
Jun 27 2016 - 6:45pm
Brexit’s Impact on Environmental Policy: The Pros and Cons
Jun 20 2016 - 5:45pm
Investments in Ag Tech on the Rise
Jun 13 2016 - 6:30pm
Supply Chain: The Top 25 Score with Sustainability Reports
Jun 6 2016 - 7:40pm

Pages

  • …
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • …

© 3BL MEDIA, LLC

  • Privacy Policy
  • Terms of Use
  • Site Map
3BL Media, LLC
136 West St Ste 104
Northampton, MA 01060
  • Contact Us
  • About Us

Find Us on Social

Latest from Leading Brands

  • 3BL Professional
  • 3BL CSRwire
  • 3BL ReportAlert

Editorial & Leadership

  • TriplePundit
  • 3BL Forum
  • 100 Best Corporate Citizens