Honors College Senior Thesis Presentations
Academic Level at Time of Presentation
Senior
Major
B.S. Economics
Minor
B.S. Finance
List all Project Mentors & Advisor(s)
Dr. Beau Sauley
Presentation Format
Oral Presentation - Murray State Access only
Abstract/Description
The 21st century has sparked a debate surrounding the primary goal of business: profits or people? Environmental Social Governance (ESG) is a new type of business philosophy that challenges the ways of old. With the social norms of the responsibilities of business changing, ESG aims to change the way businesses make strategic decisions and manage their stakeholder groups. Examples of ESG goals include reducing greenhouse gas emissions, transparent financial practices, and increasing workplace diversity. MSCI measures these goals and is the world’s most reputable ESG database. MSCI pairs publicly available data with a comprehensive grading rubric to synthesize relevant data into ESG ratings. Scores are updated annually on average.
Proponents of ESG claim that ESG should be the new standard for all businesses because it will allow them to improve their reputation and manage ESG risk factors; however, opponents argue that ESG distorts the primary aim of business: creating profits for shareholders. Are these two perspectives mutually exclusive? Can a business increase profit for shareholders while operating through an ESG philosophy? This paper analyzes 100 United States companies to measure the impact MSCI’s ESG ratings have on a $100 investment made on March 1, 2018, to September 1, 2023.
Spring Scholars Week 2024 Event
Honors College Senior Thesis Presentations
An analysis of ESG Ratings on Stock Price
The 21st century has sparked a debate surrounding the primary goal of business: profits or people? Environmental Social Governance (ESG) is a new type of business philosophy that challenges the ways of old. With the social norms of the responsibilities of business changing, ESG aims to change the way businesses make strategic decisions and manage their stakeholder groups. Examples of ESG goals include reducing greenhouse gas emissions, transparent financial practices, and increasing workplace diversity. MSCI measures these goals and is the world’s most reputable ESG database. MSCI pairs publicly available data with a comprehensive grading rubric to synthesize relevant data into ESG ratings. Scores are updated annually on average.
Proponents of ESG claim that ESG should be the new standard for all businesses because it will allow them to improve their reputation and manage ESG risk factors; however, opponents argue that ESG distorts the primary aim of business: creating profits for shareholders. Are these two perspectives mutually exclusive? Can a business increase profit for shareholders while operating through an ESG philosophy? This paper analyzes 100 United States companies to measure the impact MSCI’s ESG ratings have on a $100 investment made on March 1, 2018, to September 1, 2023.