Incorporating environmental, social, and governance (ESG) factors in decision-making by firms has generally shown these firms to have lower financial performance for firms on average.

Question

Quizplus · Accepted Answer

Explantion: False: Studies generally on average find a positive relation for firms that include ESG factors in their decision-making and financial performance, with branding and reputational benefits and lower legal liability costs for firms that consider the environmental, social actions of strategies and that have good corporate governance practices.

Incorporating Environmental, Social, and Governance (ESG) Factors in Decision-Making by Firms