• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
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HOME > Archive > 2024 > Volume 12 Number 3 (2024) >
JOEBM 2024 Vol.12(3): 230-238
DOI: 10.18178/joebm.2024.12.3.802

ESG, Operational Guidance, and Long-term Value Creation

Chenyu Liu
Baylor University, Waco, Texas, USA
Email: chenyuliu730@gmail.com (C.Y.L.)

Manuscript received December 14, 2023; revised February 27, 2024; accepted March 24, 2024; published July 9, 2024.

Abstract—Environmental, Social, and Governance (ESG) is not just a score for firms and investors to observe and determine whether to finance additional capital. ESG is also a tool that could help many firms and investors discover opportunities for growth in operations and, in turn, create long-term value. Many studies have already recognized a positive correlation between ESG and performance and have suggested steps firms take to boost their sustainability actions. However, this research paper aims to provide a new perspective firms can explore following series of case studies. The central research question of this paper is: How does ESG function as a superior mode of operational guidance for creating long-term value? With limited primary source findings and studies from secondary sources, results show that ESG can become a tool of operational guidance for firms. The improvement in environment, social, governance, performance, and risks, ESG can consistently provide firms with sustainability goals to improve and reach. Furthermore, with the introduction of the “balanced scorecard”, managers can utilize a template containing operational and financial measures to enhance the decision-making process for the firm, which will steer the firm into having long-term operation goals.

Keywords—environmental, social and governance, operation guidance, sustainability

Cite: Chenyu Liu, "ESG, Operational Guidance, and Long-term Value Creation," Journal of Economics, Business and Management, vol. 12, no. 3, pp. 230-238, 2024.

Copyright © 2024 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

 

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