It has been long stated that a firm goal should be to maximize the wealth of its shareholders. However, in recent years, firms have made an increasing investment into the ESG (Environment, Social and Governance) related issues. At the same time, a growing number of investors have started taking firms' ESG performance as a consideration when making their investment decisions. While some people argue that firms should care about social responsibility, others insist that firms should only care about the wealth of their shareholders. What is your comment on this issue? Is there a conflict between corporate ESG investment and shareholder wealth maximization? Why?

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The traditional view of maximizing shareholder wealth has been challenged by the r... View the full answer