ESG Controversies: A Quantitative and Qualitative Analysis for the Sociopolitical Determinants in EU Firms

Abstract

Environmental, Social, and Governance (ESG) criteria are novel and exciting tools of corporate disclosure for decision making. Using quantitative and qualitative analyses, the present study examined the key characteristics and trends of ESG controversies in the European market. At the same time, it identified the controversies’ determinants. A bibliometric analysis was the qualitative method employed on the data derived from Scopus using Biblioshiny software, an R package. The quantitative analysis involved an international sample of 2278 companies headquartered in Europe from 2017–2019 being studied using a Generalized Linear Model. The findings of this research highlighted the role of the “S” and the “G” dimensions of the ESG controversies as the most crucial in affecting controversies. Women are under-represented in the business hierarchy, but their natural characteristics such as friendliness and peaceability lead to a low level of illegal business practices. However, independent of gender, executives have personal gains that they want to satisfy. Thus, executives may become involved in unethical practices and harm their colleagues and the business’s reputation. On the other hand, democracy emerged as one of the most disputed factors. Democracy gives people the voice to express themselves and publicly support their ideas without restrictions. Although, the regression results showed that democracy is not always operated as the “pipe of peace” and can affect, to some extent, controversies.

Environmental sustainability assessment of excavation, construction, and demolition waste conditions and practices across Greece and Cyprus

“…This creates the need to meet the needs of this urbanization in infrastructure projects, the transfer of human and natural resources, energy, and data. At the same time, the major infrastructure projects that follow urbanization create significant environmental problems in the cultural and historical environment, in human populations, and in social and economic life [45,46]. Global economic growth and the ever-increasing rate of the population also create increased needs for natural resource requirements, with the result that resource use exceeds the capacity of ecosystems to regenerate [47].…”

The relationship between corporate governance and environmental social governance disclosure: a case of Euro-Asian firms

“…According to two studies, this lack of comparison has increased uncertainty in stock prices, an unhealthy outcome for financial markets. Along the same lines, the ESG information that often gets the most media attention includes episodes of controversy rather than statements of physical facts (Passas et al, 2022;Grifin 2022). In response to the possibility that silver could generate excess returns for investors from the ESG debate, some information providers (such as Refinitiv) are now processing and selling contentious information as proprietary products (Arrigo, 2021).…”

Mega infrastructure projects and their contribution to sustainable development: the case of the Athens Metro

“…Some project influence factors are difficult to predict and may represent minor or major risks; however, if they enter, the consequences might be severe (Dimitriou, Harman and Ward, 2010). Failure to appropriately examine environmental and social factors can result in substantial risks, such as losing the support of key stakeholders, failing to identify how to fulfil stakeholder objectives, or causing unacceptable consequences that are too expensive to repair (Passas et al 2022). As part of their infrastructure development plans, more project sponsors emphasise developing and presenting a "sustainable business case."…”