From Shareholder Value to Stakeholder Impact: Integrating ESG Considerations into Financial Decisions

This study examines the integration of environmental, social and governance (ESG) factors into financial decision-making and examines the shift from a shareholder value focus to a broader stakeholder impact perspective. Using a comparative case study analysis of three multinational companies – Ørsted (energy), Unilever (consumer goods) and Microsoft (technology) – this study examines how companies identify and manage ESG risks, exploit ESG-related opportunities and interact with various stakeholders to integrate ESG -Information in your reporting. The results show a continued trend towards stakeholder capitalism, with companies recognizing the importance of considering ESG factors for long-term value creation. While specific ESG priorities and engagement strategies vary by industry, all cases demonstrate proactive risk assessment, pursuit of shared value opportunities and increasing transparency in reporting. This research contributes to the literature on stakeholder theory and value creation by providing empirical evidence on how leading companies integrate ESG considerations into their core business strategies. It provides valuable insights for practitioners seeking to improve their ESG performance and for policymakers seeking to promote sustainable business practices.