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What other way would you suggest companies could link shareholder incentives and ethics? Hitting ESG metrics / recieving ESG credentials is a way for companies
by Jommi 6y ago
What other way would you suggest companies could link shareholder incentives and ethics?
Hitting ESG metrics / recieving ESG credentials is a way for companies to benefit from doing the right thing.
- MaxHoppersGhost 6y agoI am a proponent of ESG but (to me at least) it doesn’t appear there is a standardized method of calculation for metrics and things like forced labor (Nike, Apple) or pandering to a govt by censoring (NBA, Google) aren’t being captured. I could be off as I haven’t studied it that much. Everyone can agree what GAAP net income is but calculating ESG metrics is much more subjective.
- findthewords 6y agoEthical behaviour cannot be measured. Companies are still maximising shareholder value. They are doing it by gaming ESG metrics. Nothing has changed.
- Jommi 6y agoI think it can be approximated. And that's better than nothing. Would you agree?