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>That's not extortion, that's the opposite - bribery. I think that depends on your perspective. From the company's perspective, they're bribing the ratings age
by antasvara 4y ago
>That's not extortion, that's the opposite - bribery.
I think that depends on your perspective. From the company's perspective, they're bribing the ratings agency by donating money.
From the agency's perspective, they're using their rating as a way of coercing a company into making donations. That could be considered extortion, though not in the legal sense.
- ClumsyPilot 4y agoI think the distinction is -> if I threaten you by planting drugs on you, which I am not legally meant to do, then I am extrorting you as I took the initiative. If you are the one that was doing something illegal to begin with, and bribe an official to keep it under wraps, then it's on you.
- antasvara 4y agoI agree with the general sentiment here. Initiative is what ultimately matters. I would question which direction the initiative is with respect to ESG ratings. If an ESG rating agency is publicly or privately showing exactly how certain factors are weighted, I would argue that the initiative is with the agency.