Browsing by Subject "Sustainable development reporting"
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- Item"Can I get a cup of coffee with that sustainability?" An Analysis of the Environmental, Ethical, and Economic Aspects of the Coffee Industry(2020) Jaycobs, Jolie; Dhillon, Carla MayThis paper aims to accomplish three main objectives; the first is to evaluate the coffee industry using the triple bottom line theory. This theory uses the social, environmental, and economic components of business to analyze sustainability and it emphasizes the inherent tensions between each component. The second objective is to make the coffee industry more transparent for the general public. A significant disconnect exists between the consumers and producers of coffee, resulting in a lack of awareness around environmental and social injustices. The last objective is to educate consumers on how to purchase coffee ethically, diswayding consumers from solely relying on certifications. In order to achieve these objectives, we conducted three case studies. We consulted three roasters in Philadelphia: La Colombe, ReAnimator, and Elixr, focusing on a single origin coffee from each shop; one from Costa Rica, Ethiopia, and El Salvador, respectively. Using the triple bottom line framework, we analyzed the roaster and the coffee industry in each of these countries to highlight the main environmental, economic, and social dynamics that the consumer should be aware of. The trade-offs vary between each country, but often involve an economic component due to the power of capital. When purchasing coffee we recommend consumers identify the country of origin, look for transparency, start a dialogue with the roaster to learn about buying practices, and support shade-grown coffee.
- ItemESG and Financial Returns: Does Socially Responsible Investing Pay?(2020) Moore, Diane; Mudd, ShannonGiven the recent growth in the ethical investing field, I test the effect of environmental, social, and governance (ESG) performance, a metric that reflects a firm's engagement in socially responsible behaviors, on financial returns. Specifically, I assess whether opportunities to earn outsized returns from ESG have decreased over time as individuals have grown more interested in socially conscious investing and professional asset managers have become increasingly cognizant of the lower risk levels of high ESG investments. To do this, I form high and low ESG, E, S, and G portfolios of S&P 500 firms from 2004 –2018 using best-in-class and straight ranking methods to select companies. I observe no abnormal performance for high scoring portfolios throughout the sample period for either selection method. This indicates that investors accurately valued the reduced firm risk of firms that earn high ESG scores into their investment process. However, I find high positive abnormal returns of 7.12% and 6.98% under the best-in-class and straight firm selection strategies, respectively, for low ESG portfolios held during the Great Recession and immediate post-recession recovery period. Since risk premiums increase during times of crisis, this suggests that investors disproportionately penalized and underpaid for low rated firms during this time period.