New Book on ESG Investing Features Chapter on Value Creation
A new book about ESG (environmental, social, governance) investing features seven chapters covering all aspects of the field, including a chapter on the convergence of social justice and value creation written by the founder of the Enterprise Engagement Alliance and an advisory board member.
A Comprehensive Overview of ESG
The Convergence of Social Justice and Value Creation
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The growing popularity of Environmental, Social, and Governance (ESG) principles gained such favor in recent years that many companies and investment firms used them to mislead customers and investors. This in turn led to a backlash from which the field has slowly begun to recover as a result of increased scrutiny of greenwashing claims, higher standards, and a focus on value creation.
A Comprehensive Overview of ESG
Here are the subjects covered in the recently released ESG Investing: Current Theory and Investing, edited by John Hill, visiting instructor at the Fairfield University Charles F. Dolan School of Business. Published by De Gruyter, it includes seven chapters on:
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Modern Portfolio Theory, Capital Market Structural Changes and ESG, asserting that ESG is an extension of Modern Portfolio Theory.
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Universal Ownership Perspective: Incorporate ESG Metrics to Monitor and Manage Externalities, covering the responsibilities borne by large institutional investors,
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A Review of ESG Measurements and Ratings, providing an overview of how ESG factors are assessed in finance.
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A Practical Guide to Sustainable Investing by Asset Class, offering an overview of ESG-oriented asset groups.
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Environmental, Social, and Governance in Private Equity addresses the growing role of ESG factors in that sector.
- ESG—The Convergence of Social Justice and Value Creation shows how the arc of ESG is leading toward value creation.
- The Case Against Mandatory ESG Standards provides an overview of the risks involved with mandatory disclosures.
The concepts of ESG and racial equity are evolving from social responsibilities into fiduciary duties, driven by measurable impacts on financial performance and new regulatory frameworks like the European Union's Corporate Sustainability Reporting Directive (CSRD). This shift emphasizes the integration of Diversity, Equity, and Inclusion (DEI) into business strategies as a source of value creation rather than solely social justice.
In their chapter, ESG—The Convergence of Social Justice and Value Creation, Enterprise Engagement Alliance Founder Bruce Bolger and Eric Darrisaw, EEA Board Advisor, Principal of Lazarus Advisors, and Board Member for Inter-Faith Center for Corporate Responsibility, chart the convergence of ESG, DEI (diversity, equity, and inclusion) and value creation.
Their chapter covers:
The convergence of global initiatives: The Global Sullivan Principles, NAACP Fair Share Model, and EU CSRD (Corporate Sustainability Reporting Directive) collectively emphasize corporate responsibility, transparency, stakeholder engagement, and community development as pathways to sustainable value creation.
ESG’s evolution toward being a fiduciary responsibility: ESG and racial equity are increasingly seen as essential for sustainable financial returns, supported by analytics and regulatory mandates such as the EU CSRD.
The economic case for inclusive stakeholder engagement: Evidence shows that engaging diverse customers, employees, and partners leads to more sustainable profitability, reframing DEI as an economic imperative rather than social engineering.
Integration of DEI in business processes: Effective DEI requires embedding its principles across stakeholder management and human capital practices, moving beyond isolated diversity initiatives and gaining support from leadership and shareholders.
Challenges of traditional DEI approaches: Focusing solely on the social justice argument for DEI can reduce feelings of belonging among underrepresented groups, as well as create divisions, highlighting the need for economic framing to drive organizational adoption.
Importance of standardized DEI reporting: Investors need measurable, standardized disclosures on ESG DEI practices integrated with governance and human capital management to assess financial materiality and enable benchmarking.
European Union CSRD as a game-changer: The EU CSRD mandates detailed sustainability disclosures affecting thousands of companies globally, promoting transparency on workforce metrics and stakeholder impacts, potentially setting a global standard.
Historical foundations in corporate responsibility: The Global Sullivan Principles, developed by Reverend Leon Sullivan in the 20th century, laid early groundwork for ethical business practices focused on human rights and social equity, influencing modern ESG frameworks.
NAACP Fair Share Model and minority empowerment: This model and related scorecards encourage corporate investment in minority businesses and workforce diversity, aligning economic inclusion with social equity goals.
Enterprise Engagement Alliance Services
Celebrating our 15th year, the Enterprise Engagement Alliance helps organizations enhance performance through:1. Information and marketing opportunities on stakeholder management and total rewards:
- ESM Weekly on stakeholder management since 2009. Click here to subscribe; click here for media kit.
- RRN Weekly on total rewards since 1996. Click here to subscribe; click here for media kit.
- EEA YouTube channel on enterprise engagement, human capital, and total rewards since 2020
Management Academy to enhance future equity value for your organization.3. Books on implementation: Enterprise Engagement for CEOs and Enterprise Engagement: The Roadmap.
4. Advisory services and research: Strategic guidance, learning and certification on stakeholder management, measurement, metrics, and corporate sustainability reporting.
5. Permission-based targeted business development to identify and build relationships with the people most likely to buy.
Contact: Bruce Bolger at TheICEE.org; 914-591-7600, ext. 230.
