ESG as Dead and Alive

doi:10.1017/9781009594912.002

1 - ESG as Dead and Alive

How Confusion Around ESG’s Meaning Hinders and Benefits ESG’s Future

Published online by Cambridge University Press: 27 December 2025

Edited by

Andreas Rasche and

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

Today many have predicted the death of environmental, social, and governance (ESG). Alas, even amidst such predictions, there remains considerable confusion about ESG’s meaning. Some view ESG as synonymous with corporate social responsibility or stakeholderism, others view ESG as a mechanism for assessing risks; some characterize ESG as political, others view ESG as inextricably aligned with business goals. The lack of consensus around ESG’s meaning makes assessing its demise complex. On the one hand, any future version of ESG will be incompatible with alternative – and strongly held – conceptions of ESG, confirming predictions of ESG’s demise while ensuring that ESG’s future will be plagued by controversy and discontent. Nonetheless, there is a version of ESG that is both sustainable because it focuses on economic risks and opportunities, and also beneficial because it may move the needle on improving shareholder value while positively impacting critical social issues.

Keywords

stakeholderism ESG sustainability social impact investing corporate governance

Information

Type: Chapter
Information: The Ethics of ESG
Critically Assessing the Environmental, Social and Governance Movement
, pp. 21 - 50

DOI: https://doi.org/10.1017/9781009594912.002 [Opens in a new window]

Publisher: Cambridge University Press

Print publication year: 2026

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