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Going ESG: The Economic Value of Adopting an ESG Policy

Author

Listed:
  • 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)

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.

Suggested Citation

  • Maya Finger & Mosi Rosenboim, 2022. "Going ESG: The Economic Value of Adopting an ESG Policy," Sustainability, MDPI, vol. 14(21), pages 1-15, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:13917-:d:953934
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    References listed on IDEAS

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