| dc.description.abstract | According to Nobel laureate American economist Milton Friedman, the principal
responsibility of a business is to optimize profits for its shareholders. Historically,
most profit-driven firms disregarded the importance of social, environmental, and
governance responsibilities. The main factor is that ESG responsibilities are seen as
potentially onerous for financial performance since they are linked to cost escalations
rather than being completely neutral. Nevertheless, during the last two decades, it has
been evident that environmental, governance, and social issues significantly affect
the financial sustainability of several companies, in addition to their profitability.
Consequently, this resulted in the development of the asset allocation procedure. This
research seeks to assess the relationship between Environmental, Social, and
Governance (ESG) ratings and the financial indication of manufacturing enterprises
in Vietnam over the period from 2019 to 2022. Furthermore, it assists firms in
acknowledging the need of including the influence on other stakeholders and the
environment, alongside the goal of maximizing shareholder value, to generate
enduring value in the long run. The current research analyzed the ESG pillars of 150
manufacturing businesses situated in Vietnam listed on the Ho Chi Minh Stock
Exchange and Hanoi Stock Exchange. The financial performance measures
employed in this assessment were ROE and ROA | en_US |
