Business Law, Public Responsibility, and Ethics Commons^™

Linking Sustainability Performance To Stock Resilience During And After Covid-19 Crisis: Evidence From Southeast Asia, Khalilul Rahman, Retnosari Retnosari, Sanda Patrisia Komalasari, Muhammad Wafiq

Jurnal Akuntansi dan Keuangan Indonesia

Background: The COVID-19 pandemic severely disrupted markets. While sustainability performance measured by ESG scores theoretically buffers against shocks, its efficacy in emerging markets with nascent sustainability frameworks remains underexplored. Method: We analyze a balanced panel of 1,395 observations from 279 non-financial Southeast Asian firms (2020–2024). Using OLS, lagged, and fixed effects models, we compare the impact of sustainability performance on stock resilience during the 2020–2022 and post-pandemic (2023–2024) periods. Findings: Sustainability performance (ESG scores) significantly enhanced stock resilience during the pandemic. However, this protective effect dissipated post-pandemic. Results confirm a statistically significant improvement in overall resilience following the crisis, as …

Navigating The Eu’S Corporate Sustainability Due Diligence Directive: Strategic Implications For Us Companies, Silvia Ciacchi, Michael Faure, Sharon Oded

Michigan Business & Entrepreneurial Law Review

The European Union’s (“EU”) Corporate Sustainability Due Diligence Directive (“CSDDD” or the “Directive”) introduces new human rights and environmental obligations that reshape global corporate governance. This paper explores its impact on US companies, with a particular focus on compliance strategies under both direct and indirect applicability. It contrasts tactical compliance, which emphasizes risk mitigation while meeting minimum legal requirements, against strategic compliance, where companies use sustainability to gain a competitive edge in the market.

This paper highlights how varying enforcement levels across EU Member States may incentivize companies to “forum shop” or choose jurisdictions with more relaxed enforcement. It also …

Accounting In A Changing Landscape: A Collection Of Case Studies, Rachel K. Rowe

Honors Theses

This thesis comprises six independent yet interconnected case studies that reflect on a range of modern accounting and regulatory topics. These cases were written under the direction of Dr. Victoria Dickinson during two semesters of the Professional Research and Development Thesis Program at the University of Mississippi. The purpose of this class is to provide students with the opportunity to research cases that have real-world applications in the field of accounting.

The first case explores Environmental, Social, and Governance (ESG) issues, emphasizing the increased importance of reporting for them and the growing role of accountants in sustainability assurance. The second …

From Fraud To Future: Accountancy Case Studies On Financial Illusions, Policy Failures, And The Economic Renaissance Of Mississippi’S Broadband Initiative, Hayden Brennan Adams

Honors Theses

This Honors Practicum is a compilation of case studies completed under the supervision of Dr. Victoria Dickenson across two semesters of the course Accountancy 420 — Independent Study. The first semester (Fall 2023) of case studies involved both individual and group case studies examining various geopolitical implications of contemporary accounting, as well as the surge in environmental, social, and governance (ESG) regulations affecting financial reporting. The second semester (Spring 2024) was mostly centered around a collaborative Mississippi economic development proposal project conducted by four other students and myself. In our project, we construct a business plan for a start-up broadband …

Is Corporate Social Responsibility A Must Or A Plus? The Role Of National Culture, Liu Wang, Shaomin Li

Management Faculty Publications

This study examines the role of national culture in shaping corporate social responsibility (CSR) practices and how CSR is valued by investors. In a multilevel study of 4998 firms across 34 nations, we find that firms in performance-based culture (PBC) are more likely to engage in explicit CSR activities, but performance-driven investors view such an effort as a drag on shareholder returns in PBC-oriented societies, resulting in lower valuation. In contrast, firms in socially supportive culture (SSC) tend to invest less in explicit CSR activities, but such an investment is viewed favorably by social-minded investors in SSC-oriented societies, and thus …

Comparing Esg Reporting And Market Dynamics In The Technology And Consumer Industries: Analyzing Investor Reactions And Understanding The Future Of Corporate Reporting, Sophia Nguyen

CMC Senior Theses

The increasing emphasis on Environmental, Social, and Governance (ESG) reporting has sparked debate about its influence on market reactions and corporate transparency. This thesis investigates the impact of ESG disclosures on investor behavior and market dynamics within the technology industry specifically, focusing on the correlation between ESG performance and stock price volatility, as well as other financial ratios. This relationship will be compared to those of various companies within the consumer business industry, to determine whether investors have the same reactions towards consumer business companies compared to consumer-facing technology companies and other technology companies. Additionally, the study explores whether investors …

Perceived Employer Authenticity Effects On Employee Engagement Demonstrated Through Csr/Esg Communications, Nichole P. Klaaren

Doctor of Business Administration Dissertations

Having an engaged workforce is a key competitive advantage in the market today due to the unique benefits that employees create through organizational culture and their relationships with stakeholders. With the increase in organizations participating in and reporting their Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) activities to their stakeholders, communicating these types of activities becomes another tool for improving employee engagement. This research uses Social Identity Theory (SIT) to explain the important connections that can be built with employees when a corporation acts authentically. The key objective of this study was to explore how corporate authenticity …

Another Major Question: The Department Of Labor Should Retire The Tiebreaker Rule And Reemploy Pecuniary Language In Erisa, Brandon Chesner

Fordham Journal of Corporate & Financial Law

The Employee Retirement Income Security Act of 1974 (“ERISA”) soon turns 50. Instead of celebrating with cake, retirees and future retirees alike get to witness a new chapter in the debate over the consideration of Environmental, Social, or Governance (“ESG”) factors in investing with plan assets. As employees cross the bridge into retirement, they look to their 401(k)s and pension plans for peace of mind, for it is ERISA that has been working silently in the background establishing minimum standards, practices, and fiduciary duties to protect participants. In recent years, the U.S. Department of Labor (“DOL”) has passed three regulations—two …

Corporate Esg Falls Short: Systemic Anti-Black Racism And Inequality Should Be Addressed Through A Cumulative Integrated Approach, Ferrell L. Littlejohn

Fordham Journal of Corporate & Financial Law

In the 1896 case Plessy v. Ferguson, the Supreme Court endorsed the “separate but equal” doctrine, essentially codifying racial segregation. This decision guaranteed that systemic racism would permeate every fabric of society despite the abolition of slavery. Recently, many corporate institutions have pledged to actively support the fight against systemic racism through their environmental, social, and governance (“ESG”) initiatives. Corporate stakeholders have actively advocated for these initiatives, particularly in response to recent scholarship revealing the significant involvement of capitalist institutions in historical slavery, and the continued perpetuation of anti-Black racism. Nevertheless, such initiatives, for example, internal diversity, equity, and …

The Relationship Of Esg Component Scores And Creditworthiness On Publicly Listed Firms In The Asean-5 Countries, Shayne Jefferson Alvarez, Charlene Ashley C. Cu, Lance L. Lamberte, Patrick Henry G. Yap, Paulynne J. Castillo, Roberto B. Raymundo, Joel Q. Tanchuco

Angelo King Institute for Economic and Business Studies (AKI)

ESG ratings are crucial for ASEAN-5 businesses' creditworthiness. While existing studies often concentrate on ESG's impact on financial performance or general pillars, a detailed exploration of the 10 specific ESG components in the ASEAN-5 is lacking. This study addresses this gap, examining how ESG ratings affect a company's creditworthiness (probability of default) in publicly traded companies across the ASEAN-5 countries while considering potential heterogeneity. Utilizing annual data from 2013-2022 for 10 ESG components and Eikon Refinitiv's probability of default via the Starmine Combined Credit Risk Model across ASEAN-5, the study employs a panel OLS regression model with White's Robust Standard …

Esg News, Future Cash Flows, And Firm Value, Francois Derrin, Philipp Krueger, Augustin Landier, Tianhao Yao

Research Collection Lee Kong Chian School Of Business

We investigate the expected consequences of negative ESG news on firms’ future profits. After learning about negative ESG news, analysts significantly downgrade their forecasts at short and longer horizons. Negative ESG news affect forecasts more strongly at longer horizons than other types of negative corporate news. The negative revisions of earnings forecasts following negative ESG news reflect expectations of lower future sales (rather than higher future costs). Quantitatively, forecast revisions can explain most of the negative impacts of ESG news on firm value. Analysts are correct to revise forecasts downward following negative ESG news and ESG sensitive analysts tend to …

But Is It Material? A Case Study Evaluating Climate Risk’S Place In Financial Disclosures, Matilda Lindberg

Student Theses and Dissertations

The year of 2022 highlighted the importance of understanding how Environment, Social, and Governance (hereafter, ESG) factors impact investors. By the end of 2021, 37.8 trillion USD had been invested in ESG funds, a number expected to grow to $53 trillion by the end of 2025. Despite this bullish projection, controversy has grown about the “materiality” of ESG factors, especially climate risks, as defined by the Securities and Exchange Commission (hereafter, SEC). On March 21, 2022, the SEC proposed rules to enhance the standardization of climate- related disclosures (hereafter The Proposal) to promote consistent, comparable, and reliable information for investors …

Ownership Of Esg Characteristics, Mark E. Bateman, Lisa R. Goldberg

School of Public Service Faculty Publications

A portfolio can be viewed as the collection of the businesses, policies and practices of constituent companies. We measure investors' Ownership of this collection. Ownership metrics aggregate an assortment of company specific Environmental, Social and Governance (ESG) characteristics to the portfolio level, and they can inform investment and engagement decisions. Relative to a benchmark, investor Ownership is active and satisfies a zero-sum property, which underscores the distinction between Ownership and impact. Ownership of ESG characteristics may be interpreted as ascribing ethical responsibility, but that conclusion and any decisions that result from it belong to the investor.

The Growth Drivers And Inhibitors Of The B Corp Movement, Jason Plant

Honors Theses and Capstones

No abstract provided.

Comparing The Environmental And Social Factors Of Uk And Us Firms: A Case For Stringent Disclosure Regulation, Jasmine Pybas

Dissertations, Theses, and Capstone Projects

Variation in “good” corporate behavior can be observed across countries. Corporate social re- sponsibility (CSR) can be measured with a quantifiable environmental, social, and governance (ESG) score, which was developed in part from investor demand. ESG scores are popular among investors to make sound, responsible investment decisions and corporations to demonstrate their commitment to sustainable business practices. In a comparison of environmental and social fac- tors of US and UK firms among three industries, the British outperform their American counter- parts. The degree of disclosure regulation by their respective financial authoritative bodies ac- counts for this discrepancy.

Corporate Governance Guidelines: How To Improve Disclosure And Promote Better Corporate Governance In Public Companies, Jennifer O'Hare

Faculty Publications

If you are a shareholder of a public corporation, you may think it would be easy to find basic information about your shareholder rights, such as whether shareholders have the right to call special stockholder meetings. You would probably assume that the information would be disclosed in the company’s “Corporate Governance Guidelines,” (CGGs) which, according to a New York Stock Exchange (NYSE) rule, must be posted on the company’s website for shareholder review. But, as this article shows, companies are not required to disclose information about shareholder rights in their corporate governance guidelines, and most companies have chosen not to …

The Influence Of Regulatory Oversight On Environmental, Social, And Governance Ratings, John F. Torpey

Engaged Management ReView

Firm performance in the specific areas of environmental stewardship, social responsibility, and corporate governance (ESG) has become an important criterion that investors use in determining a firm’s value. This empirical investigation, based on stakeholder theory examines the relationship between regulatory oversight and third-party ESG ratings. Our research methodology involved quantitative, observational, and retrospective analyses. The study population consisted of 471 firms from two heavily regulated industry sectors—the utility and financial sectors—and from two less regulated sectors—the information technology and consumer discretionary sectors. We compiled the ESG ratings for the firms from two independent rating services. The quantitative evaluation included multiple …

Don't Forget The "G" In Esg: The Sec And Corporate Governance Disclosure, Jennifer O'Hare

Faculty Publications

For years, many shareholders—both institutional and individual investors—have pressured the Securities and Exchange Commission (“SEC”) to require public companies to disclose more information about the environmental, social, and governance (“ESG”) risks facing the company. However, the SEC has generally refused calls to require public corporations to disclose, for example, how they are addressing climate change or workforce diversity challenges. With a new president in the White House and a new administration at the SEC, the SEC will soon propose new ESG disclosure rules, requiring more information about the “E” and the “S” in ESG. But the SEC has forgotten the …

Sustainability In Construction Practices As Emphasis On Environmental Investing In Esg Model Grows, Maddie Heal

Management Undergraduate Honors Theses

The purpose of this research is to emphasize the importance of growing investment on environmental initiatives in business ESG models in regard to sustainable practices in construction. The ESG acronym is known as the environmental, social, and governance efforts that businesses strive to incorporate in their models to increase the responsibility of operations.

Investors continue to seek out responsible businesses when choosing which ventures to pursue. The analysis of the current construction crisis, current investments in the right direction of Eco-friendly design regarding construction, and the threats and benefits incentivizing those investments elucidates the need to emphasize socially responsible investment …

Recipe For Good: Analyzing The Authenticity Of Csr Commitments Among The Leadership Of A Parent Company To Global Restaurant Brands., Lauren E. Reuss

College of Arts & Sciences Senior Theses

Corporate Social Responsibility (CSR) is a form of private self-regulation conducted by businesses; CSR aims to contribute to societal goals of philanthropy, activism, and ethics by improving society, policy, and or the environment. Corporate social responsibility is becoming a greater aspect of modern business, but as it becomes part of the modern discourse, it is right to question whether its efforts are authentic to those driving these initiatives? This case study seeks to understand how the leadership within the parent company of a global foods brand depicts authenticity and communicates its social and environmental efforts to stakeholders. Building on existing …

Esg Ratings: A Blind Spot For U.S. Securities Regulation, Alexander Coley

Northwestern Journal of International Law & Business

Providers of “Environmental, Social, and Governance” (ESG) ratings have emerged as prominent informational intermediaries in the sustainable finance ecosystem. The key players are familiar names such as Moody’s, Morningstar, MSCI and S&P. In recent years, investors, financial markets observers and academics have raised serious doubts about the value and integrity of ESG ratings, pointing to lack of reliability and comparability and risks of conflicts of interest and abuse, including the potential for “greenwashing.”

ESG ratings are now in the crosshairs of financial regulators, particularly, in Europe. However, the regulatory discourse has failed to contend with risks arising from the use …

Repurposing The Corporation Through Stakeholder Markets, Lynn M. Lopucki

UF Law Faculty Publications

Corporate social responsibility (CSR) is immensely popular. Rhetorically, nearly all public corporations have committed to it. But corporations don’t act responsibly. That is because no system exists by which their responsibility levels can be measured and rewarded or punished. Thousands of organizations worldwide are engaged in a cooperative effort to build such a system. After two decades of work, the system is almost entirely in place. It may become effective in the next two to three years. When it does, the system will continually measure and report publicly as many as a thousand audited data points on the CSR of …

Global Shift Towards Stakeholder-Oriented Corporate Governance? Evidence From The Scholarly Literature And Future Research Opportunities, Toru Yoshikawa, Michael Nippa, Gavin Chua

Research Collection Lee Kong Chian School Of Business

Purpose: By reviewing prior scholarly corporate governance (CG) literature and a review of more recent stakeholder studies, this paper aims to examine the extent to which stakeholders and their interests have gained in importance in recent years compared to the shareholder approach, which is dominant in many national economies and suggest future research opportunities. Design/methodology/approach: This study conducts a literature review to examine major findings in prior studies. Findings: The reviews and analyses provide support for a formal and informal convergence of CG systems towards more stakeholder-oriented elements globally. In general, at the institutional and firm levels, there are remarkable …

Who Makes Esg? Understanding Stakeholders In The Esg Debate, Matthew Diller, Stephanie Betts, Lorenzo Corte, David M. Silk, Scott V. Simpson, Lisa M. Fairfax, Carmen X. W. Lu, David H. Webber, Leo E. Strine, Jr., Sean J. Griffith

Fordham Journal of Corporate & Financial Law

No abstract provided.

The Invisible Hurdle: Biases Investors Have Against Sustainable Investing, Kerry E. Ullman

Student Publications

A current trend of many corporations is making it a priority to focus on becoming more socially responsible and ethical in all aspects of their businesses. Investors, on the other hand, have not been as focused on incorporating these issues into their selection criteria, especially when it comes to the issue of sustainable investing (ESG). This research tries to understand what the hidden barriers are that stop individual investors from investing sustainably. This research examines the effect of proper information on sustainable investing and the most effective communication strategies to relay this information to investors. There was a control group …

Corporate Social Responsibility And Sustainable Finance: A Review Of The Literature, Hao Liang, Luc Renneboog

Research Collection Lee Kong Chian School Of Business

Corporate Social Responsibility (CSR) refers to the incorporation of Environmental, Social, and Governance (ESG) considerations into corporate management, financial decision making, and investors’ portfolio decisions. Socially responsible firms are expected to internalize the externalities (e.g. pollution) they create, and are willing to be accountable to shareholders as well as a broader group of stakeholders (employees, customers, suppliers, local communities,…). Over the past two decades, various rating agencies developed firm-level measures of ESG performance, which are widely used in the literature. A problem for past and a challenge for future research is that these ratings show inconsistencies, which depend on the …

Dbs Impact Measurement Project: Technical Review, Hao Liang, Phuong Tran Bao Nguyen, David Fernandez, Jun Ho Park

Research Collection Lee Kong Chian School Of Business

The measurement of ESG and its impact is becoming one of the more important and debated issues in sustainable business practice, with the significant challenges being the subjectivity of scope, criteria, as well as lack of consistency across different rating agencies and data providers

Impact measurement goes beyond ESG measurement. Apart from qualitative and input-based approach, it encapsulates a more outcome/impact-based approach, supported with quantitative methods

Impact measurement and valuation are still at the infant stage, with limited research and guidelines, thus [Impact Institute] II’s approach has significant novelty and is among the first to measure and value impact

II …