Abhyaas Mains GS4 1

 Environmental, social and governance concerns are external to traditional functioning of corporations

Necessity of integration

• Sustainability of growth is becoming low, e.g., global temperatures @1.5 degree above PIR level
• Growing inequality, top 1% own, 40% of national wealth
• Need to integrate morality into investors and shareholders, e.g., accountability, transparency etc
•  Ensure smoother co-operation various stake holders like public, share holders, managers, consumers, government etc

Benefits

• Ensuring clarity of conscience
• Sustainable development
• Panchamrit goals
• Empowering vulnerable sections; women, children, SC/ST etc
• Increased productivity

 Integrating multi-stakeholder approach and ESG could lead to several benefits like rapid growth, sustainability, poverty reduction and betterment of social inequality. Hence it is desirable.