An Austrian Take on ESG
This paper analyzes the contemporary debate about ESG – Environment, Social, Governance – using economic insights from Austrian Economics; particularly, on entrepreneurship, agency, and information asymmetry. These insights are contrasted to similar concepts in “mainstream” economics suggesting that...
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| Format: | Article |
| Language: | Portuguese |
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Instituto Mises Brasil
2021-12-01
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| Series: | Mises |
| Subjects: | |
| Online Access: | https://www.revistamises.org.br/misesjournal/article/view/1416 |
| _version_ | 1819237127557218304 |
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| author | Henrique Schneider |
| author_facet | Henrique Schneider |
| author_sort | Henrique Schneider |
| collection | DOAJ |
| description | This paper analyzes the contemporary debate about ESG – Environment, Social, Governance – using economic insights from Austrian Economics; particularly, on entrepreneurship, agency, and information asymmetry. These insights are contrasted to similar concepts in “mainstream” economics suggesting that the Austrian insight goes beyond them, first by stressing effectiveness in addition to efficiency and institutions in addition to law-likeliness. When applied to ESG, the Austrian insight portraits ESG as a special case of the socialist, or economic calculation debate causing misalignments between inter- and intrafirm goals, exacerbates agency problems and suffers from serious flaws in its conceptualization as well as methodology. Relying on entrepreneurship, however, could make ESG work. This paper, thus, applies Austrian economics to contemporary debates claiming that its insights provide a unique perspective but at the same time updating its research program. |
| first_indexed | 2024-12-23T13:15:23Z |
| format | Article |
| id | doaj.art-efb93b82a7ce454e9e6db255edfd6545 |
| institution | Directory Open Access Journal |
| issn | 2318-0811 2594-9187 |
| language | Portuguese |
| last_indexed | 2024-12-23T13:15:23Z |
| publishDate | 2021-12-01 |
| publisher | Instituto Mises Brasil |
| record_format | Article |
| series | Mises |
| spelling | doaj.art-efb93b82a7ce454e9e6db255edfd65452022-12-21T17:45:37ZporInstituto Mises BrasilMises2318-08112594-91872021-12-01910.30800/mises.2021.v9.1416An Austrian Take on ESGHenrique Schneider0Swiss Federation of Small and Medium Enterprises – Switzerland - SchwarztorstrasseThis paper analyzes the contemporary debate about ESG – Environment, Social, Governance – using economic insights from Austrian Economics; particularly, on entrepreneurship, agency, and information asymmetry. These insights are contrasted to similar concepts in “mainstream” economics suggesting that the Austrian insight goes beyond them, first by stressing effectiveness in addition to efficiency and institutions in addition to law-likeliness. When applied to ESG, the Austrian insight portraits ESG as a special case of the socialist, or economic calculation debate causing misalignments between inter- and intrafirm goals, exacerbates agency problems and suffers from serious flaws in its conceptualization as well as methodology. Relying on entrepreneurship, however, could make ESG work. This paper, thus, applies Austrian economics to contemporary debates claiming that its insights provide a unique perspective but at the same time updating its research program.https://www.revistamises.org.br/misesjournal/article/view/1416ESGSocialist Calculation DebateAgencyEntrepreneurshipInformation Asymmetry |
| spellingShingle | Henrique Schneider An Austrian Take on ESG Mises ESG Socialist Calculation Debate Agency Entrepreneurship Information Asymmetry |
| title | An Austrian Take on ESG |
| title_full | An Austrian Take on ESG |
| title_fullStr | An Austrian Take on ESG |
| title_full_unstemmed | An Austrian Take on ESG |
| title_short | An Austrian Take on ESG |
| title_sort | austrian take on esg |
| topic | ESG Socialist Calculation Debate Agency Entrepreneurship Information Asymmetry |
| url | https://www.revistamises.org.br/misesjournal/article/view/1416 |
| work_keys_str_mv | AT henriqueschneider anaustriantakeonesg AT henriqueschneider austriantakeonesg |