In Recent Years, There Has Been Greater Emphasis Made for Strategic

In recent years, there has been greater emphasis made for strategic decisions to include other stakeholders including the consideration of environmental, social, governance (ESG) factors in the decision-making framework. Research has also shown additional benefits with empirical findings that if firms include ESG factors in decisions, firms will maximize shareholders' wealth by attracting better and more loyal employees and customers. Explain why incorporating ESG factors in decision-making could help improve the reputation and long-term performance of a financial institution.