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This post presents key insights from the authors 2024 research into the perceptions of senior figures in Israel’s capital market regarding ESG (Environmental, Social, and Governance) and corporate responsibility. Based on in-depth interviews with 23 executives, regulators, investors, and opinion leaders, the study reveals a market still lagging behind global leaders, with fragmented awareness, inconsistent implementation, and minimal regulation. The findings highlight skepticism about ESG’s financial relevance, a lack of reliable local ESG metrics, cultural barriers, and insufficient media engagement – conditions that fuel greenwashing and limit investor demand. Unlike Europe’s regulator-driven approach or the United States’ politically polarized "post-ESG" climate, Israel’s ESG development remains slow and largely uncoordinated. The research outlines a comprehensive roadmap focusing on education and research, the creation of a transparent and credible Israeli ESG index, unified and mandatory ESG disclosure aligned with global standards, and a broad cultural shift to raise public awareness and foster cross-sector cooperation. Closing Israel’s ESG gap is both a market necessity and a societal opportunity, with the potential to boost competitiveness, attract responsible investment, and strengthen the long-term resilience of Israel’s economy and society. To read the full article, visit our Hebrew main blog.

Israel ranks among the top ten countries in per-capita use of single-use tableware, generating about 13 billion pieces of waste annually. Past regulatory measures, such as taxes, proved temporary – once removed, old habits quickly returned.   This post introduces a behavioral policy approach based on the COM-B model – Capability, Opportunity, and Motivation – as a tool for diagnosing and addressing the root causes of persistent single-use habits. The model helps organizations map physical and psychological abilities, social and infrastructural opportunities, and both reflective and automatic motivations that shape behavior.   By applying COM-B in four diverse organizations, tailored interventions – ranging from removing single-use items from offices to strengthening social norms for reusables – achieved measurable reductions. The research shows that real change requires more than awareness campaigns; it demands targeted, evidence-based strategies that work within each organization’s unique context.   Ultimately, the path to sustainability is not just about providing alternatives, but about reshaping the habits, environments, and motivations that drive everyday choices.   To read the full article, visit our Hebrew main blog

This post argues that traditional ESG disclosures overlook a critical dimension: Climate justice. Glossy reports often highlight direct emission cuts yet ignore broader social impacts, especially on vulnerable communities most exposed to environmental harm. Embedding climate justice principles means looking beyond compliance to questions of fairness—who bears the risks, who shares the benefits, and whose voices are heard.   The author outlines practical steps companies can take: mapping at-risk groups near operations, making environmental data publicly accessible, involving communities in decision making, prioritizing projects that serve marginalized areas, and ensuring boards integrate social climate risks into strategy and compensation. These measures transform ESG from a metrics exercise into a tool for equitable transition.   Climate justice reporting is not philanthropy—it strengthens resilience, reduces reputational risk, and builds trust with investors and society. Companies that adopt this lens will lead the shift toward a low-carbon economy that leaves no one behind.   To read the full article, visit our Hebrew main blog

This paper examines the critical relationship between climate action and economic stability, arguing that the transition to a low-carbon economy represents both an environmental necessity and a significant economic opportunity. Despite decades of international climate agreements, global greenhouse gas emissions continue to rise while climate impacts intensify worldwide. The analysis reveals a substantial gap between declared emission reduction targets and actual implementation, demonstrating that existing technologies can achieve the majority of required emission reductions by 2050. The study shows that rapid decarbonization is not only compatible with economic growth but essential for preventing catastrophic economic losses from climate damages. The author argues that climate crisis management is fundamentally economic risk management, both globally and locally. While climate inaction poses severe economic threats through extreme weather events and systemic disruption, the transition to renewable energy and clean technologies offers unprecedented economic opportunities, as evidenced by countries that have successfully decoupled emissions from economic growth. The paper concludes that achieving Net Zero by 2050 requires coordinated action from policymakers, businesses, and civil society, with clear carbon pricing mechanisms and strategic investments in clean energy infrastructure. The author recommends viewing the low-carbon transition not as an economic burden but as a pathway to sustainable prosperity, emphasizing that the choice is between costly climate damages and profitable climate solutions. Author : Yoni Sapir, CEO of Future Climate Innovation Company

This post challenges the conventional separation between marketing and ESG, arguing that marketing is not just compatible with ESG—it's essential to it. From responsible advertising and inclusive design to circular product strategies and socially driven branding, marketing decisions shape how ESG values are understood, experienced, and acted upon.   While regulatory frameworks have formalized ESG reporting, the deeper opportunity lies in how brands embed these values into their products, messaging, and customer relationships. Consumers increasingly reward brands that align with their ethics—not just in what they sell, but in how they sell it.   The post presents a framework called "Impact Marketing", which integrates environmental and social concerns into core marketing functions. This includes ethical communication, sustainable product development, inclusive outreach, and the cultivation of emotional resonance around shared purpose.   Ultimately, ESG should not be an external checklist—it should be a strategic lens that shapes how brands connect, differentiate, and lead.   To read the full article, visit our Hebrew main blog

Presenteeism, defined as employees attending work while ill, represents a widespread phenomenon with significant implications for both individual well-being and organizational performance. Pre-pandemic data reveals that 60% of Israeli employees reported attending work during illness, compared to 42% in the European Union and 68% in the United States. This practice carries substantial health and economic consequences, including the spread of infectious diseases to colleagues and clients, deterioration of the individual's health condition, and decreased productivity. While absenteeism results in a complete loss of daily productivity, presenteeism creates harder-to-quantify costs through reduced output, professional errors, and safety violations. Research suggests that the cumulative costs of presenteeism may exceed those of absenteeism, challenging traditional organizational perspectives on attendance.   The factors driving presenteeism are multifaceted, encompassing individual health status, gender-related considerations, workplace stress, negative organizational behaviors, levels of job autonomy, and organizational culture. Israeli research findings reveal significant gender disparities, with women exhibiting higher rates of presenteeism, particularly pronounced in the education sector where 15% of the workforce is employed. Critically, the study demonstrates that managerial support and assistance significantly reduce presenteeism rates, suggesting that organizations can effectively address this issue through supportive management cultures. Given the dual impact on employee welfare and public health—especially relevant for infectious diseases—organizations must develop comprehensive approaches that prioritize both worker well-being and broader social responsibility, recognizing presenteeism as a systemic organizational climate issue requiring strategic intervention. Haim Bleikh is a researcher at the Taub Center for Social Policy Studies in Israel. This post is based on his 2024 study (Hebrew).

In the past decade, Israel has faced a major challenge that parallels to the challenges in many systems around the world – the “Fiscal Trilemma”. The trilemma consists of three conflicting goals: budgetary stability (reducing the deficit and public debt), efficient and tax collection, and the provision of quality and accessible public services, especially in the areas of health, education and welfare. The struggle between these demands, which sometimes contradict each other, directly affects the standard of living, the economy, and governance – both at the state level and at the corporate level. In this post, I will argue that the solution to the fiscal trilemma in Israel requires a transition from a traditional governance model to an innovative multi-layered model that integrates ESG (environmental, social and governance) principles at both the public and corporate levels. The need to rehabilitate the Israeli North and South is a strategic opportunity for the implementation of this model. The model can serve as an engine for sustainable growth and for reducing social gaps in the country. Such a combination will enable Israel to successfully address the complex challenge of balancing fiscal stability, social justice and economic efficiency. The Current Fiscal Situation in Israel: Data and Findings The fiscal trilemma in Israel is well analyzed in the report "Fiscal Aggregates and a New Budgetary Priorities for Israel" by Prof. Karnit Flug, Tzachi David, and Roy Kenneth Portal. The trilemma describes, among other things, the challenge of balancing its three components in the face of a large erosion in public expenditure – as a percentage of GDP. The  state budget for the years 2023-2024 reached a low of 32.6% of the projected GDP, a low level in reference to the OECD average, which stands at about 45%.The large gap between net civilian expenditure in Israel (excluding defense expenditure and interest) and this expenditure in other countries leads to gaps in social services and a sense of disappointment among citizens in Israel. The report emphasizes the need to change budgetary priorities and the importance of focusing on investment in infrastructure, education, and health, especially in the periphery, to cope with the current social and economic challenges. Israel also suffers from a high level of budgetary concentration: a significant proportion of the municipalities' revenues come from the government. Moreover, there are gaps between the center and the periphery, and these gaps attest to a failure in the mechanisms of division between the government and the authorities, and to a lack of coordination and authority. The need to invest in the reconstruction of the North and South is an opportunity to implement multi-layered policies with goals to build a sustainable environmental, social, and governance model (ESG). To understand how multi-tiered governance and ESG provide a direct response to these problems, it is necessary to dismantle the existing failure mechanism: today, high budgetary concentration means that the government determines the scope and type of social services provided in the periphery, but it is not intimately familiar with local needs, and therefore resources are not allocated efficiently. Multi-layered governance is intended to correct this failure by transferring executive, planning, and control powers to local authorities, while maintaining budgetary and strategic responsibility at the national level. In other words, the government is still setting policy, but implementation is adapted to the field. For example, in Scandinavia, education, health, and transportation are managed at the local level, but budgeted at the national level according to differential distribution formulas. Moreover, ESG principles are not a conceptual addition, but rather a useful tool for managing and measuring social and environmental performance. They can be used to define and monitor clear indicators such as average travel times to health services, the rate of participation in early childhood education frameworks and the level of public investment in disadvantaged areas. Once the government, local authorities and corporations are committed to publicly reporting this type of data, a data-based control system is created that allows for the identification of gaps, the setting of priorities and the intelligent routing of resources. Thus, the integration of ESG principles improves public service, increases transparency and enables more effective management of local social and environmental risks. Each of the three components of the trilemma carries a critical weight: a balanced budget is the basis for macroeconomic stability and it lowers risk to the economy. Fair taxation ensures efficient and fair budgeting of public activity, and quality public service is a socio-economic necessity that leads to growth and ensures equal opportunities. But in Israel's economic reality, which is expressed in deep inequality and budgetary difficulties, the trilemma becomes particularly problematic. Proper management of the trilemma requires strong public and corporate governance that is capable of operating with full transparency, accountability, and based on long-term planning and innovation in risk management. Without quality governance, the trilemma threatens to weaken stability and damage social resilience. Public Governance in Israel: Challenges and Solutions Public governance in Israel faces structural challenges: from the division of powers between ministries, through the lack of transparency and efficiency in budget control, to the difficulties in implementing long-term changes. Still, corporate governance – part of the economic economy – must come into play by implementing ESG (environmental, social, governance) principles in business management. Investing in ESG aspects improves transparency of operations, reduces risks, and increases social and environmental responsibility – thus helping to create trust and market positioning. Social inequality in Israel, especially in peripherals such as the north and south, is a clear manifestation of the trilemma's failure. Widespread gaps in income, health services, and education increase the sense of alienation, impair social mobility, and prevent great economic potential. A weak health system in the periphery is characterized by low life expectancy and poor quality of life, and education systems with few resources. They harm the economic opportunities of the future generation. Public service is the bridge between budget policy and the needs of the citizens, and therefore it must be of high quality and equitable, otherwise public expenditure is liable to be wasted and useless. The business sector, especially in its activity in the periphery, can and should also participate actively in reducing the gaps, not only through limited corporate responsibility, but also through systematic contribution to community development, a broad ESG strategy. For example, we can see regional ventures in which corporations collaborate with local authorities, government ministries, and communities to promote employment, education, and technology. Partnerships of this type illustrate how corporations can transform from external actors into strategic partners in the fabric of socio-economic governance and contribute to strengthening local resilience over time. The Solution: Implementing ESG Principles and Multi-Layered Governance International studies  categorically state that high-quality and equitable investment in education and health in the periphery, along with high-quality physical and managerial infrastructure, increase productivity, increases social mobility, reduces income and health gaps, and increases public trust in institutions. And not only that: it is emphasized that the quality of governance, which is expressed in transparency, accountability, and public participation, directly affects the success of fiscal policy, inter alia by improving the efficiency of the budget and its social efficiency. The reconstruction of the North and the South is not just a socio-economic need – it is a strategic opportunity to design a sustainable model of governance, ESG, and economic growth. To succeed, an innovative public governance model is needed that combines digital technologies for transparency and monitoring, high accountability, and civic involvement indecision-making mechanisms. In addition, the government must promote economic incentives and involve the private sector and the third sector in social and environmental initiatives to increase the scope of investment and ensure long-term economic resilience. For example, governments in countries such as Germany have shown that the implementation of multi-layered governance methods, along with targeted incentives in the periphery, yields optimal results: they reduce inequality, increase employment, and promote economic growth and quality services in disadvantaged areas. Multi-tiered governance is a method of cooperation and division of powers and responsibilities between three entities: the state, local government, and non-state actors (such as civil society, the private sector, and academia). A local example of the realization of the principles of multi-layered governance is the activities of the Negev Development Authority and the Galilee Development Authority. These authorities promote projects in the fields of employment, infrastructure, and education in the periphery, and have cooperated with government ministries, local authorities, the business sector, and the civil society – thus implementing the principles of multi-layered governance. This concept of governance enables better adaptation of infrastructure to local needs and improves the efficiency of public investment. In terms of social equality, it contributes to a precise response to peripheral gaps and disadvantaged groups. In terms of productivity, it strengthens coordination between employment, transportation, and education systems at the local level. In terms of transparency, it increases civic involvement and public trust in institutions. Economic analyses show that a lack of sufficiently high investment in the periphery could lead to a slowdown in productivity, a decline in growth, and increased inequality. All of these weaken the stability of the economy. In contrast, combined investment in improving education, health, and infrastructure systems increases the productivity of the population and enables sustained and stable growth. In recent years , studies have emphasized  that this is not only a matter of specific economic improvement, but also the creation of more equal opportunities for the entire population.  Opportunities that lead to greater social mobility and a reduction in gaps in society. Implementation Challenges and Practical Methods of Implementation At the same time, it should be recognized that these proposals, in the form of multi-layered governance and the implementation of ESG principles, are not without implementation challenges – both on the political and operational levels. First, the division of powers between the government and the local authorities requires a profound structural change, including legislation that establishes mechanisms of responsibility, budgeting, and coordination. The development of planning, measurement, and analysis units at the local level will be required, alongside administrative infrastructures that do not exist in most of the municipalities in Israel. This is a complex process that requires not only resources, but also training, accessibility of distributed data, and inter-ministerial cooperation (a field that in Israel often encounters bureaucratic difficulties). Second, the implementation of ESG in the public sector is nota trivial matter. Mandatory reporting requires supporting information systems, institutional incentives, and professional guidance to ensure that the indices do not become just another report. ESG indicators should be integrated as an integral part of the decision-making process: for example, linking the budgeting of a local authority to an improvement in health transportation accessibility indicators or investment in disadvantaged populations. Third, there is a fundamental political constraint: in order for such a model to mature, government continuity and multi-year budgeting are required. Without them, such initiatives are liable to get stuck in the way, especially politicians, bureaucrats, and the public believe that they depend on short-term political will or a single term of office. Therefore, broad agreements between government ministries, local authorities, corporations, and civil bodies must be formulated at an early stage, and concrete practical goals must be set (e.g., a selection of several ESG indicators that will enter current budgetary use as early as 2026). Effective management of the fiscal trilemma therefore requires not only budgetary balance, but also data-based public and corporate governance. Public governance includes transparency, tight budgetary control, multi-year policy planning, and inter-ministerial collaborations. Corporate governance requires ESG reporting as an institutional obligation and management of social and environmental risks as part of the business strategy. It also requires active contribution to social development in the periphery, in cooperation with the government and the third sector. Conclusion and Recommendations The fiscal trilemma in Israel is more than a budgetary challenge – it is a test of the degree of governance and the ability of the leadership to lead sustainable socio-economic change. The trilemma emphasizes the need for a precise balance between economic and social goals, strengthening public and corporate governance, and implementing ESG principles to ensure sustainable economic growth and reduce social gaps. The combination of strong public governance, corporate responsibility through ESG principles, and the opportunity to rehabilitate the periphery allows not only to succeed in the budget balance, but also to promote a more equitable society and stable growth. The government, the business sector, and academia must cooperate to promote governance reforms, invest in the periphery, and encourage an ESG culture at all levels of management. The key lies in strategic leadership, leadership that is willing to take responsibility, innovate, and act for the common good. Only in this way can we turn the trilemma into a real opportunity for rehabilitation and growth.   Yair Avidan, Chair of the Advisory Committee, Arison Center for ESG, Reichman University

This post explores the gap between formal ESG reporting and meaningful brand communication. While ESG reports often fulfill regulatory requirements, they rarely resonate with employees, customers, or the public. True impact comes not from spreadsheets—but from stories, design, and cultural relevance.   Today's audiences—especially younger generations—expect companies to live their values and communicate them authentically. ESG is not just about compliance; it is about identity. Brands that translate ESG into engaging, visual, and narrative-driven content can build stronger emotional connections and trust.   Drawing on examples from companies like Lemonade, Driftime, Dell, and Microsoft, the post illustrates how organizations can turn dry data into experiences. Whether through interactive design, minimalist summaries, or emotionally driven storytelling, these brands have aligned their ESG communication with their mission and audience.   Done right, ESG becomes more than a report—it becomes a strategic expression of who the company is and what it stands for.   To read the full article, visit our Hebrew main blog

This post offers a philosophical and historical critique of ESG as a framework for corporate responsibility. It argues that while ESG was intended to integrate environmental and social ethics into business practice, it often reduces these concerns to external compliance—checklists, ratings, and metrics that fail to reflect authentic moral commitment.   Tracing the roots of business ethics from ancient economies to modern corporations, the author highlights how economic activity was once embedded in community values. Today’s institutionalized responsibility models—especially ESG—risk reinforcing the very separation between ethics and enterprise they seek to repair.   The piece calls for a return to an internal, values-driven approach: ethics as a natural part of business identity, not an afterthought. This shift begins with education—embedding ethical thinking in business curricula from the outset, shaping future leaders who see responsibility not as a regulatory burden but as a core principle of their profession.   To read the full article, visit our Hebrew main blog

This post examines Israel’s experience in attempting to reduce single-use plastic consumption, highlighting how environmental regulation intersects with behavioral economics, social equity, and political realities.   While environmental taxes can be effective in theory, their success depends on cultural and social context. In Israel, a tax on single-use plastics led to a significant initial decline in consumption but was later repealed amid political backlash—especially from the ultra-Orthodox community, which viewed the measure as unfairly targeting them.   Drawing on field research with ultra-Orthodox communities, the post suggests that "soft regulation"—including nudges, health messaging, and cultural framing—can encourage more sustainable behavior without creating resistance. Small, practical behavioral shifts can have a cumulative impact when embedded in a supportive policy environment.   Ultimately, sustainable change requires policies that are not only environmentally sound but also socially sensitive. Effective ESG-oriented governance must consider local norms, motivations, and barriers to ensure long-term impact.   To read the full article, visit our Hebrew main blog

The debate over corporate social responsibility and ESG principles has reached a critical juncture, with companies facing unprecedented pressure to balance shareholder interests against broader stakeholder concerns. This tension has intensified amid political backlash against ESG initiatives, exemplified by Trump's recent "Drill, baby, drill" rhetoric. However, traditional economic analysis – which assumes purely rational decision-making – may be insufficient to understand this complex transformation in corporate behavior and legal expectations. This article introduces behavioral economics as a powerful but underutilized lens for examining corporate responsibility. Unlike classical economics, behavioral economics recognizes that human decisions are influenced by emotional factors, cognitive biases, and perceptions of fairness – not just profit maximization. Through examples like the famous "ultimatum game," the research demonstrates how people consistently make decisions that prioritize fairness over personal gain, willingly sacrificing economic benefits to maintain ethical standards or punish unfair behavior. It explores how this behavioral perspective is reshaping corporate law and governance. Legal frameworks are increasingly incorporating stakeholder fairness principles, transforming fundamental corporate law doctrines and moving beyond the traditional focus on shareholders alone. Professor Bukspan argues that integrating behavioral economics insights into corporate strategy offers companies a compass for navigating legal risks, seizing business opportunities, and building sustainable cultures of cooperation, trust, and social responsibility. To read the full article, visit our Hebrew main blog

Responsible Business Conduct – The OECD and the National Contact Point in Israel This position paper outlines the OECD's leading role in advancing responsible business conduct and highlights Israel's National Contact Point (NCP) as a key mechanism for implementing these principles both locally and internationally. The OECD Guidelines for Multinational Enterprises – widely regarded as the "gold standard" of corporate responsibility – provide non-binding yet highly influential standards across areas such as transparency, environmental protection, taxation, labor rights, and anti-corruption.   The paper presents the OECD's six-step due diligence framework, stressing that it is a dynamic and preventive process aimed at continuous improvement rather than perfection. It describes how Israel's NCP, operating under the Ministry of Economy and Industry, handles complaints, facilitates mediation, and raises awareness across sectors.   The paper emphasizes how NCPs in over 50 countries help companies align with ESG principles through non-judicial, constructive engagement. Looking ahead, the analysis identifies challenges including fragmented regulation, increasing compliance burdens, and the potential misuse of complaint mechanisms – while reaffirming the critical importance of professionalism and impartiality.   To read the full article, visit our Hebrew main blog