Going ESG: The Economic Value of Adopting an ESG Policy

Maya Finger () and Mosi Rosenboim
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Maya Finger: Business Faculty, The College of Management Academic Studies, Rishon Lezion 75190, Israel
Mosi Rosenboim: Department of Management, Guilford Glazer Faculty of Business and Management, Ben Gurion University of the Negev, Beer-Sheva 84105, Israel

Sustainability, 2022, vol. 14, issue 21, 1-15

Abstract: Does having an environmental, social, and governance (ESG) policy have an impact on stakeholders? This research presents a unique model that allows us to measure the economic value of adopting an ESG policy for financial institutions’ stakeholders. Using the results of a questionnaire distributed among financial institution employees and customers, we find that, on average, employees are willing to forgo 11% of their salary to work for a company that has adopted and implemented such a policy. In addition, customers are willing to pay 47% more in management fees to do business with financial institutions that have such a policy. To our knowledge, this is the first study that quantifies the benefits for financial institutions stakeholders of adopting an ESG policy.

Keywords: ESG; impact; employees; customers; additional value; financial institutions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:21:p:13917-:d:953934

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