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7 - Responsibilization of Business and the Informational Ethics of ESG

Published online by Cambridge University Press:  27 December 2025

Valentina Gentile
Affiliation:
Luiss University of Rome
Eric W. Orts
Affiliation:
Wharton School, University of Pennsylvania
Andreas Rasche
Affiliation:
Copenhagen Business School
Alan Strudler
Affiliation:
Wharton School, University of Pennsylvania
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Summary

In this chapter argues that the ethics of Environmental, Social, and Governance (ESG) must be understood as inseparable from the modes of responsibilization that have preceded it, which refers to developments in business ethics, Corporate Social Responsibility (CSR) and corporate sustainability. Focusing primarily on ESG as a heading for corporate responsibility policies and practices within the context of EU regulation, the chapter considers ESG as a supplement to prior conceptions rather than a stand–alone concept. After outlining the foundational, societal and environmental accomplishments of the three preceding constructs, the chapter argues that the defining, supplementary feature of ESG is that it is informational and that it has emerged as a concept that binds together the information needs of investors and other stakeholders, corporate disclosures, and government regulation. Thus, the ethics of ESG must be understood in terms of its ability to put greater and more obligatory demands on corporate responsibility through standardized reporting, standardized methods, and standardized data and performance measures.

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