Laidlaw Week 6
Explanation of my ESG research
Focus of project:
- Firm commitment to ESG goals.
- Is media coverage an effective accountability mechanism for firms to meet employment targets of government subsidy contracts?
- When governments give firms subsidies, they usually give conditions eg. create this amount of jobs. Does media coverage on these subsidies actually hold firms accountable?
I became interested because:
- I took IB HL economics in HS and I learned about corporate social responsibility (CSR) as a theory. Firms will seek to meet ESG goals as it improves brand images and can help increase their market share. This research can effectively either support or weaken the theory of CSR.
- We also discussed this in Professor Gulati’s Principles of Econ class.
Why people should care:
- This research can be a breakthrough in theory of the firm research in the field of economics and can help us further evaluate the traditional profit-maximization approach—do firms only seek to profit maximize when MC = MR or are there other factors that they consider?
- Also relevant in behavioral economics: do firms follow the traditional self-interest model?