Thursday, August 3, 2017

Weighing ESG - The Social Component and Company Value - BLOOMBERG

by Xing Gao
Originally published: August 1, 2017

The social component of environmental, social, and governance (ESG) reporting relates to the ways in which a company manages relationships with its employees, suppliers, customers, and the communities where it operates. It includes criteria such as diversity ratios, human capital development, corporate citizenship, and occupational health and safety.

Why Does Diversity Matter?

After the election of Shinzo Abe, Japan started to encourage women to join the workforce in recognition that its economy couldn't move forward with half of its population sitting out of the workplace. The creation of an active role for women is an important element of the “third arrow” of Abenomics within Japan’s Revitalization Strategy.