MARKETS LOOK AT COMPANIES’ CSP and ESG ACTIVITY — IS IT IMPORTANT?

Chapter 10 introduced the term Corporate and Social Performance (CSP).  Industry and Financial Markets have extended this view through “Environmental, Social, Governance” (ESG) metrics and several mutual funds have been created that comprise exclusively high ESG rated companies.  For example, the iShares MSCI ESG 400 index portfolio has holdings in 405 companies that are viewed this way (that list may include some the companies you are studying).  But it is not clear whether high CSP or ESG ratings, or any specific activities companies do,  contribute to shareholder value.  Look at some of the content and additional links below then answer these questions:

Do companies that “do the right thing” have sustainable competitive advantages because they do?  Does Positive CSP and ESG add value to a company?  What value and Why or why not?