In the introductory lecture, we discuss the multidimensional aspects of corporate sustainability performance in the areas of the financial/quantitative economic sustainability performance (ESP) and non-financial/qualitative environmental, ethical, social, and governance (EESG) sustainability performance. The contribution of ESP and EESG dimensions of sustainability performance to overall corporate performance in creating shareholder value and in protecting the interests of other stakeholders depends on whether these sustainability performance dimensions are viewed and treated as complementing/completing each other or conflicting/competing with each other.

This course explores these contradictory views on corporate sustainability and offers suggestions for sustainability performance congruence in all five dimensions. Theoretically, management engagement in EESG activities and performance can be viewed as value-increasing or value-decreasing for investors. On one hand, companies that effectively manage their business sustainability and improve EESG performance enhance their reputation, fulfill their social and environmental responsibility, and promote a corporate culture of integrity and competency. On the other hand, companies can only survive and generate sustainable performance when they continue to be profitable and are able to create shareholder value.

Nonetheless, ESP and EESG dimensions of sustainability performance supplement each other and are not mutually exclusive. Companies that are governed effectively, are socially and environmentally responsible and conduct themselves ethically are expected to produce sustainable performance, create shareholder value and gain investor confidence and public trust. In this context, sustainability focuses on business activities that generate long-term ESP of firm value maximization as well as voluntary activities that result in the achievement of EESG sustainability performance that concerns all stakeholders.

The main focus of this course is on economic sustainability performance, and the next course examines non-financial dimensions of sustainability performance.