Wall Street Finds Value in Compassion and Empathy

While Facebook and Wells Fargo PSAs reveal a growing trend among corporations to clean up their own messes, efforts do not go without the potential for financial gain

PUBLIC DEMAND PUTS VALUE IN PLAY

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Wall Street is all for the ESG metric, so long as it doesn’t affect the company’s bottom line.

The time it takes to adapt to new protocols isn’t a luxury public companies can afford, but I wouldn’t be surprised to see ESG boost a stock price despite a dip in profits. By sourcing research and ratings companies like Morningstar with Sustainalytics and MSCI’s ESG Research and ratings, companies like BlackRock, Inc. have already launched exchange-traded funds focused on ESG, stating this fund will not include companies involved in the business of tobacco, controversial weapons, or are in the midsts of controversy in general. While investors would prefer more transparency and consistency over how research firms calculate ESG, there are over 100 individual ESG research firms zeroing in on individual sustainability segments like climate risk or diversity and inclusion, leaving the market begging for a vendor to clean this all up.

The World Health Organization (WHO) stated that “depression” is the world’s greatest threat to humanity.

The United Nations (UN) in response drafted guidelines to help companies and countries sharpen their focus. The ascension of ESG is proof that companies are poised to gain from increased levels of employee and consumer positivity, prompting the question: and what’s better than a win, win?

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Mindful Economist. Corporate Guru. App Designer. Transmedia Authorpreneur. Eternal Student. Gamer. Father. I am all that I am.

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