Introduction to Corporate Governance and Other ESG Considerations (2023 Level I CFA Exam – LM 2)

In this lesson, Professor James Forjan, PhD, CFA, introduces Corporate Governance and ESG Considerations from the CFA Level I Corporate Issuers topic. Learn how effective governance systems and ESG integration drive sustainable value creation and risk management in organizations.
This video explains key Learning Outcome Statements (LOS) in simple, practical terms — helping you understand both exam concepts and their real-world application.
What You’ll Learn:
- The definition and purpose of corporate governance
- The roles of the board of directors and executives
- How to identify and manage stakeholder relationships
- Principal–agent conflicts and risk mitigation strategies
- ESG factors in investment analysis and corporate decision-making
- Benefits of effective corporate governance and stakeholder management
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Topic 4 – Corporate Issuers
Module 2 – Introduction to Corporate Governance and Other ESG Considerations
0:00 Introduction and Learning Outcome Objectives
4:39 LOS : Describe corporate governance.
6:51 LOS : Describe a company’s stakeholder groups and compare interests of stakeholder groups.
8:47 LOS : Describe principal–agent and other relationships in corporate governance and the conflicts that may arise in these relationships.
19:05 LOS : Describe stakeholder management.
22:00 LOS : Describe mechanisms to manage stakeholder relationships and mitigate associated risks.
25:15 LOS : Describe functions and responsibilities of a company’s board of directors and its committees.
32:57 LOS : Describe market and non-market factors that can affect stakeholder relationships and corporate governance.
36:48 LOS : Identify potential risks of poor corporate governance and stakeholder management and identify benefits from effective corporate governance and stakeholder management.
38:46 LOS : Describe factors relevant to the analysis of corporate governance and stakeholder management.
42:10 LOS : Describe environmental and social considerations in investment analysis.
45:50 LOS : Describe how environmental, social, and governance factors may be used in investment analysis.
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