Fernandez and Elfner (2015)

Fernandez, Robert, and Nicholas Elfner.  “ESG Integration in Corporate Fixed Income.”  Journal of Applied Corporate Finance, Spring 2015.

From the Conclusion (the authors are with Breckinridge Capital Advisors, a fixed income asset manager based in Boston):  "ESG analysis has been a valuable addition to our creditresearch process. It has assisted us in identifying and pricing risk. ESG issues and the evolution of corporate ESG reporting also reflect the growing appreciation that many companies may benefit by investing more heavily in their non-investor stakeholders, including their suppliers and employees as well as their customers. In recent times, there has been a singular focus on the concerns of shareholders, or what is called “shareholder value maximization.” In many cases, this focus appears to have led to short-term thinking (reflected, for example, in excessive share buybacks) at the expense of long-term investment… considering other stakeholders in the management or board decision-making process need not have negative effects on shareholders; and if done in a strategically effective way, it can end up adding significant value."

Link:  https://onlinelibrary.wiley.com/doi/pdf/10.1111/jacf.12119