Purpose Meets Profit: Are ESG Atrategies Really Worth It?

Authors
Martina Pasquini

Date published
March 2025

Center
IE-ELECNOR KNOWLEDGE HUB ON ETHICAL BUSINESS

This report examines how different types of ESG strategies—ranging from philanthropic giving and social innovation to governance reforms—impact business value. Through an analysis of purpose-driven companies recognized for their ethical practices, the study finds that well-designed ESG initiatives can indeed drive value: philanthropic and social-impact strategies boost profitability and capital efficiency; focused sustainable innovation enhances sales growth and market value; and governance strategies increase intangible brand value and stakeholder trust.



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