Give “S” a chance

Picking companies that are part of that positive development cannot be done by concentrating solely on the “E” in ESG. Stefan Björkman, CEO of the Finnish cultural foundation Föreningen Konstsamfundet, argues that investors need to put more focus on the “S” in order to weed out societal polluters.

Firstly, let’s agree that the purpose of a company is to create value. Over the long term. Short term optimisation does not count. It isn’t true value – just waiting for the next sorry owner that did not do his homework.

I’m not naive. There are countless corporations with really profitable business models that benefit from broken individuals or broken societies. The same way that it has been possible to externalise the costs for environmental waste, you can still often get away with what I would call societal waste. What do I mean? For example, burnouts, obesity, addictions and broken homes. The list can obviously be made much longer. The anonymity of large cities and the infinite internet might give us an illusion that we are not in this together, and that one could avoid responsibility or consequences by simply ducking.
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