ABSTRACT
Sustainability, with a focus on managing the expectations of a wider group of stakeholders, will enable companies to reduce the risk of unexpected shocks—which will be of value to investors. Performance will be assessed using the total shareholder return measure. The financial performance of a company and the implications for expected future performance drive the price of the shares. Further information on the use of cash measures, such as earnings before interest tax, depreciation and amortisation, over accounting measures of performance, such as earnings, can be found in Copeland et al. 1990. Volatility and uncertainty are increasing within corporate organisations' markets, as customers demand greater choice and performance combined with greater value. Companies have different reputations in the capital markets, based on past performance. Customers are willing to pay a premium for deliver psychological value and are less likely to switch to a cheaper functional alternative.
