For many corporate managers, improving their firms’ ESG (environmental, social, and corporate governance) performance is a central goal. To achieve it, they face trade-offs: Should they improve treatment of their workers, or instead reduce carbon emissions? Should they protect shareholders or the human rights of overseas workers?
Research: The ESG Issues That Matter Most to People
When evaluating American firms, the public places a significant emphasis on the treatment of workers.
July 18, 2023
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Summary.
Research conducted by nonprofit organization JUST Capital highlights the importance of public opinion in determining corporate behaviors. The study reveals that when evaluating American firms, the public places a significant emphasis on the treatment of workers. This priority remains consistent across demographic and political groups, making it a crucial factor for managers aiming to improve their firms’ ESG (environmental, social, and corporate governance) performance. JUST Capital’s methodology involves gathering public input through focus groups and surveys to define and assess justness in corporate behavior. Statistical analysis assigns weights to 20 key behaviors, with worker-related issues consistently ranking highest. Approximately 44% of respondents deem worker-related issues as most important, compared to other stakeholder categories. These findings have implications for managers seeking to be perceived as just. Prioritizing fair wages, health and safety, career advancement, and work-life balance for workers is essential. Incorporating public opinion in corporate rankings can provide a more objective and legitimate framework for evaluating justness.