Corporate Purpose in Play: The Role of ESG Investing

M-RCBG Faculty Working Paper Series, 2019-05

Draft chapter for 'Sustainable Investing: A Path to a New Horizon', Routledge, Forthcoming

28 Pages Posted: 19 Nov 2019

See all articles by John Gerard Ruggie

John Gerard Ruggie

Harvard University - Harvard Kennedy School (HKS)

Date Written: November 7, 2019

Abstract

The chapter is organized in three parts. The first briefly summarizes why the narrowly construed shareholder primacy doctrine simply hasn’t been an adequate conceptual foundation for the public corporation for some time. The second sketches out the rise of ESG investing, its performance, and its potential role in reinforcing corporate “re-purposing.” The third addresses potential impediments to the further rapid growth in ESG investing as well as moves to manage them – obstacles posed by traditional practices in the investment industry as well as by weaknesses in ESG itself. A brief conclusion wraps up the chapter.

Keywords: Corporate Purpose, ESG Investing, Shareholder-Stakeholder Dynamics

Suggested Citation

Ruggie, John Gerard, Corporate Purpose in Play: The Role of ESG Investing (November 7, 2019). M-RCBG Faculty Working Paper Series, 2019-05, Draft chapter for 'Sustainable Investing: A Path to a New Horizon', Routledge, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3483205. or http://dx.doi.org/10.2139/ssrn.3483205

John Gerard Ruggie (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States
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