ESG Investing at DWS Asset Management: The Possibilities and Perils of Whistleblowing

This case examines the dilemma faced by Desiree Fixler, head of sustainability at DWS Asset Management, in March 2021. As one of Europe’s leading asset managers, DWS had been aggressively marketing its ESG investment credentials. However, Fixler believed she had uncovered significant discrepancies between the firm’s public claims about its commitment to ESG investing and its actual practices.

The case explores the challenges Fixler encountered in an attempt to implement meaningful ESG reforms within DWS’s traditional culture. It highlights the conflict between maintaining a company’s public image and upholding ethical standards in a rapidly growing market sector. Students are asked to consider Fixler’s options as she prepares for the release of DWS’s annual report: should she push for greater transparency at the risk of her career, or remain silent and allow potentially misleading information to be published? Or should she simply resign?

The case provides a platform to discuss corporate ethics, the challenges of implementing ESG practices, and the broader implications for the integrity of the sustainable finance industry.

• From a managerial perspective, evaluate and explain the balance between appeasing internal company cultural pressures and broader external cultural forces.
• Understand the role and risks of whistleblowing.
• Evaluate the effectiveness of regulation for ESG violations, and explain how current regulations might encourage greenwashing practices.
• Assess ethical decision-making in corporate settings.