This study assesses the impact of corporate engagement in sustainability and ethical practices on shareholder returns, as defined by participation in the UN Global Compact Network Australia (UNGCNA).
A dataset of 60 UNGCNA participating companies was compared to a similar set of 60 non-participating companies from the Australian Securities Exchange (ASX). The UNGCNA participating companies were also considered against the All-Ordinaries Index, which includes the top 500 listed companies in Australia. This is the country’s oldest market index and is often used as a benchmark.
The report analyses the growth in total enterprise value or market capitalization over 3 years. The findings reveal a significant positive differential in shareholder returns for UNGCNA participants against both comparison groups. Sustainable business practices may explain the differential or, more likely, these companies have an overarching management approach or style that sets them apart. This approach includes the pursuit of sustainable performance.
About the Publishers
Professor Paul X McCarthy is a computational social science research leader, author and CEO/co-founder of League of Scholars, an online strategic research service. Paul is an adjunct professor at the University of New South Wales.
Michael Parker is the Principal Consultant at PRAXIS Communication, as well as a casual academic at the University of Technology, Sydney with expertise in strategic planning and analysis, public communication and stakeholder management.
Xian Gong is an associate researcher at Online Gravity, as well as working for the League of Scholars. Xian holds a Master's in Quantitative Finance and Business Analytics and works with pattern recognition, machine learning and data analysis.
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