Fluent Essays

1. Problem Statement * a. Next generation investors who are women of color between the ages of 17-23 (college students) do not have easy access to enter financial markets and invest using ESG Data. 2. Our Stance * 3. Connection to UD * a. Looking at the demographics of students who study at Lerner, it can be found that women of color serve as a minority. Being that Lerner would be the location at UD where financial education and portfolio management is taught, for us to be able to solve the problem of the lack of women of color’s ability to gain access to these resources (Financial instruments, financial markets, financial knowledge, and ESG data), we must open the door to more women of color and educate them as needed. This can be done by way of wise leadership as well as strengthening recruiting efforts. The form of leadership we may employ to achieve this may be a democratic style of leadership. For the purpose of engaging women of color in our effort to make this change that will benefit them. 4. History of the Problem *Ayo a. The COVID-19 pandemic has wreaked havoc across the globe. It has upended the lives of hundreds of millions of people, decimated economies, and brought the hustle and bustle of daily life to a standstill. While much of the U.S. focus has been on the erratic stock market, steep business losses, stay-at-home orders, and the scope and pace of legislative and administration responses, too little attention has been paid to the daily impacts on communities and the needs of families across the country. Women of color, in particular, play a vital role in maintaining the economic stability of their families and communities—and therefore, understanding COVID-19’s impact on this group is critical to overcoming the current crisis. Yet the public discourse about the most-needed interventions has largely overlooked the pandemic’s cascading effects on women of color, leaving them out of policy debates on what actions must be taken moving forward to sustain families while reinvigorating the economy. Women of color often stand at the intersection of multiple barriers, experiencing the combined effects of racial, gender, ethnic, and other forms of bias while navigating systems and institutional structures in which entrenched disparities remain the status quo. Many women of color have to grapple with negative stereotypes and attitudes that affect how they are treated at work, whether they can provide care for their families, and whether they can access the quality health care that they need without bias and discrimination. Now, the aggressive spread of COVID-19 is creating new obstacles with far-reaching implications for the ability of women of color—and all individuals—to survive, thrive, and participate in an economy that works for all. Understanding these concerns can help reveal in stark terms where there are inequities that must be addressed and what interventions are needed to support families. Early state data showing higher rates of COVID-19 contraction and mortality among African Americans only amplify the importance of examining the different biases that could be playing a role in the spread, treatment, and containment of the disease. Furthermore, the inadequate support for essential frontline workers providing care and critical services—including nursing assistants, home health aides, and grocery store cashiers—demand close scrutiny, as the needs of these workers can no longer be minimized, ignored, or devalued. Women of color disproportionately work in many of these jobs where there are unspoken expectations of availability to provide care and services for others; yet there is too little examination of the challenges these women face, their workplace obstacles, and their family needs. Such examination is the centerpiece of this report’s focus on women of color and informs the policy recommendations discussed herein; moreover, it is essential to helping families survive and actively participate in an economy that will need maximum engagement in order to rebound in the days and months ahead. (https://www.americanprogress.org/issues/women/reports/2020/04/23/483846/frontlines-work-home/) b. Women of color continue to confront significant hurdles to participation in the financial markets and the creation of long-term wealth. Deep social inequities exist that are impeding development and potential in communities of color, from poverty to a lack of financial knowledge and chronic underfunding of women entrepreneurs of color. c. ESG stands for the Environmental, Social, and Governance factors that play a role in a type of investing also known as... guess what? Sustainable investing. Its a practice that values companies that do everything from actively managing their carbon footprints to ensuring labour laws are being upheld. ESG investing consists of only investing your money in ways that promote sustainability. ESG factors are often used by investors who seek to reward and influence a company’s long-term health. For many investors, understanding the ESG factors of a company helps them understand corporate purpose, strategy, and general management quality. Areas that fall under the umbrella term of ESG factors include Energy efficiency, Greenhouse gas (GHG) emissions, Staff turnover, Training and qualification, Maturity of workforce, Corruption, Revenues from new product. Socially conscious investors practice ESG investing not only for moral or environmental reasons but also because they believe that rewarding these kinds of values will support a company’s long-term performance. Theyre investing in sustainability itself. And it’s a risk management move. To them, investing significantly in a company with notoriously unsafe workplace practices or a history of oil spills is an inherently fraught investment and wont pay off in the end. When ESG was first coined as a term in 2005, it was considered a novel approach, and even today theres a lingering attitude that prioritizing ESG factors while choosing investments will negatively affect financial performance. But now that sustainability issues are thought of by society as less of an experiment and more of an immediate necessity, most investors agree that ESG issues are a crucial factor when evaluating the financial health of a company. “ESG” is now mainstream investment lingo. (https://www.wealthsimple.com/en-ca/learn/esg-investing#esg_vs_socially_responsible_investing_sri) 5. Current Options (What is currently available) 6. Investigation (how did they investigate more) 7. What we heard? (Our general opinions regarding the subject matter) a. Most people agree with women of color being left out of the world of finance. There has also been a constant rise of interest in ESG investing among women and millennials. 8. Our Solution * 9. Comparisons vs Options a. ESG vs SRI Investing i. So now that we’ve covered the basics of ESG investments, it’s worth circling back for a second to highlight some differences between ESG vs socially responsible investing. While it may seem that ESG investing and socially responsible investing are the same thing, the difference is that SRIs tend to be driven by a set of values usually guided by religious or certain societal principles, whereas ESG investments tend to be driven by more generalized moral values. If youre interested in SRIs, you’re probably going to screen companies that are involved in tobacco or alcohol or pornographic products. ESG factors, on the other hand, are a bit broader and tend to refer more to guidelines that protect human rights and the environment. Nonetheless, most investors use the terms interchangeably. 10. Potential Setbacks *