The manuscript delves into sustainable investment approaches
enhancing the decentralization of corporate governance across worldwide
communities. The worldwide network of economies and societies is still growing
as a result of the digital industrial revolution. However, challenges related
to sustainability, like disruption and climate change, have gotten worse. The
involvement of multiple stakeholders is essential in addressing challenges
related to sustainability in international communities. It is anticipated that
multi-stakeholder cooperative and competitive schemes will be used to build
sustainable communities. Sustainable global communities must reform centralized
economies with top-down systems and must move toward decentralized mechanisms
known as bottom-up societies. Sustainable investment strategies to support the
environment, society and governance (ESG) presumably improve social welfare.
This article describes that multi-stakeholders can introduce a decentralized
incentive scheme into global economies and can provide mathematical expressions
of sustainable investment strategies. The decentralized formulation described
herein is used to evaluate the improvement of ESG initiatives by the decrease
of social welfare losses. The formulation states mathematically relative
relations among the investment strategies. This mathematical model explores the
social welfare effects of initiatives to enhance standards, regulations, and
legislation. Empirically, one finds that integration strategies have grown
remarkably as a core part of social institutional reform for sustainability. It
has been concluded that efforts to enhance social evaluation by those left out
of market transactions significantly reduce losses to social welfare. These
results may encourage efforts to lessen the disruption challenges that local
communities encounter. The results presented herein are expected to be
applicable for various global crises. Initiatives by which ESG can solve global
crises consistently will be pursued in further research in this field.
Author(s) Details:
Dr. Hiroshige Tanaka,
Institute of Economic Research, Chuo University, Japan
Chiharu Tanaka
Trading Division, Mitsubishi UFJ Asset Management Co., Ltd., Japan.
Please see the link here: https://stm.bookpi.org/CRBME-V6/article/view/14350
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