Index

Accountable Capitalism Act, 13, 23, 30

Business sustainability, 2–3

Capitals

EESG-related risks, 17

environmental, 23–24

financial, 20

human, 20–23

intellectual, 26–27

manufacturing, 25

operational, 19–20

reputational/trust, 25–26

social capital, 24–25

strategic, 18–19

sustainability, 16, 17

types, 16

Climate Risk Disclosure Act of 2019, 13

Codetermination model, 22

Company-specific sustainability metrics, 48

Corporate culture, 26

Corporate governance

shareholder primacy and capitalism model

agency costs, 32

agency/shareholder theory, 36–37

corporate social responsibility (CSR), 35

director fiduciary duties, 37–38

financial and economic growth, 32

governance strategies, 35

mechanisms, 33

principal–agent theory, 31–32

residual contract rights, 33

shareholder-driven aspect, 34

shareholder theory, 36

voting right and engagements, 34, 36

stakeholder primacy and capitalism model

company-specific sustainability metrics, 48

economic sustainability performance (ESP), 46

EESG sustainability performance, 46–47

IBC/WEF framework, 49, 50

internal and external governance mechanisms, 51

long-term value driver, 47–48

materiality, 49

principles, 51

public companies’ performance, 45

stakeholder theory, 46

sustainability issues, 48

wealth maximization, 45

Corporate Human Rights Risk Assessment, Prevention, and Mitigation Act of 2019, 13

Corporate purpose, 3–4

corporate social responsibility (CSR), 35

Corporate sustainability, 1

COVID-19 pandemic, 1, 17, 27

Economic sustainability performance (ESP), 2

Environmental capital, 23–24

Environmental, ethical, social, and governance (EESG) sustainability, 3, 6, 15, 46–47

Environmental risks, 17

ESG Disclosure Simplification Act, 13

Ethical risks, 17

European corporate governance model, 1, 11

Financial capital, 15, 20

German Law on One-Third Participation and German Co-Determination Act of 1976, 22

German Stock Corporation Act, 22

Global Impact Investing Network (GIIN), 4

Governance risks, 17

Human capital

codetermination model, 22

COVID-19 pandemic, 21

definition, 20–21

employee productivity, 21

shared governance, 21

worker-elected directors, 22

workers participation, 22

Intellectual capital, 26–27

Investments

corporate purpose, 6

corporate purpose and stakeholder, 5

regulators, 4–5

socially responsible investing, 5–6

sustainability disclosures, 6

sustainability policies, 7

Manufacturing capital, 25

National Labor Relations Act (NLRA), 23

Natural capital, 24

Operational capital, 19–20

Principal–agent model, 26

Principal–agent theory, 31–32

Reputational capital, 25–26

Reward Work Act, 23

Shareholder primacy and capitalism model

Accountable Capitalism Act, 30

business organizations, 31

corporate governance (see Corporate governance)

Dalio’s statement, 9–10

EESG sustainability disclosure, 10

empirical analysis, 10

environmental and social issues, 31

long-term sustainability, 8

“one share, one vote” principle, 9

shareholder wealth creation, 30

shortcomings, 35

U.S. capital markets, 9

wealth maximization, 30

Social capital, 24–25

Socially responsible investing (SRI), 5

Social risks, 17

Stakeholder primacy/capitalism, 1

business organizations, 44–45

business sustainability, 11

corporate governance, 45–52

corporate purposes, 41

digital age, 43

environmental, social, and governance, 42

initiatives, 44

multiple bottom lines (MBL) performance, 43

vs. shareholder capitalism, 11–13

stakeholder theory, 43

welfare creation, 11

World Economic Forum (WEF), 42

Strategic capital, 18–19

Sustainability Accounting Standards Board (SASB), 48

Trust capital, 25–26

U.S. corporate governance model, 8