This paper addresses the question of whether regulation-imposed environmental, sustainability, and governance (ESG) mandates affect the principal-agent relationship between shareholders and managers in public companies. In other words, are shareholders affected when a company’s management prioritizes ESG considerations over profit-enhancing decisions? This question is part of a broader corporate governance debate that has been taking place in recent years on the relative benefits and costs of a legal system that increasingly reflects a stakeholder versus a shareholder orientation. Under the traditional shareholder orientation model, management is directly and only accountable to shareholders and is responsible for maximizing firm value. Under the stakeholder orientation model, management is responsible to a broader set of stakeholders that includes but is not limited to shareholders, such as workers and the society at large.