Sustainability is emerging as a market driver for companies with the potential to grow profits and increase opportunities for value creation. The growth of sustainable and ethical business is dependent on consumer support. Beyond the direct purchase of goods and services, consumers support corporations through socially and sustainably responsible investing.
Instructions:
Read this website on sustainable investing: https://www.sustainvestmanagement.com/socially-responsible-or-esg-investing/.
For this assignment, assume you have been asked to research and to evaluate the value of socially/sustainably responsible investing (SRI) for a group of your peers interested in value creation for their portfolios. You are making a presentation of your findings to the group.
Address the following in your presentation:
1. What is the significance of SRI to an industry?
2. What are three ways to participate in SRI that include investing in companies that showcase some kind of Environmental and Social Governance (ESG)?
3. Why would investing in socially responsible companies be attractive? Defend your argument from both an ethical and financial perspective.
4. Which ESG criteria would you use to select well-run companies in which to invest and why?
5. Based on three examples of profitable and socially responsible corporations with exemplary ESG, evaluate the links between ethical consumption and ethical investing. (Include citations and links to the websites of each company, as well as a brief summary of its stock performance.)