Cutting-edge corporate law recommends a degree
Posted: Thu Jan 23, 2025 4:26 am
The acronym ESG has been the subject of much misunderstanding.
ESG is the English acronym for Environmental, Social and Governance, as the areas of activity for companies, both private and public. In plain Portuguese, we would have ESG, but for various reasons, the term ESG has prevailed.
Originally, the idea was that companies should not only look buy bulk sms oman after their financial results, but develop a strategic vision that considered the environmental and social impacts of their activities, hence the need to improve governance.
From this perspective, the commitment of administrators goes beyond the universe of owners and shareholders, also reaching multiple interested parties (stakeholders), such as customers, suppliers, employees, communities and governments.
This is a vision that could be called “progressive capitalist” in which the evolution of business brings benefits not only to investors, but to society.
Therein lies an ideological battleground that has been intensifying, especially in light of the political polarization in the United States. There, the most conservative segments have decided to close ranks against ESG issues, arguing that the role of companies is only to make a profit for shareholders, that this alone is sufficient for economic development, and that anything that deviates from this – such as environmental concerns, diversity, gender equality, etc. – ends up compromising financial results. The echo of such reasoning in the cacophony of social media has made it difficult to have a frank and productive debate on the topic.
ESG is the English acronym for Environmental, Social and Governance, as the areas of activity for companies, both private and public. In plain Portuguese, we would have ESG, but for various reasons, the term ESG has prevailed.
Originally, the idea was that companies should not only look buy bulk sms oman after their financial results, but develop a strategic vision that considered the environmental and social impacts of their activities, hence the need to improve governance.
From this perspective, the commitment of administrators goes beyond the universe of owners and shareholders, also reaching multiple interested parties (stakeholders), such as customers, suppliers, employees, communities and governments.
This is a vision that could be called “progressive capitalist” in which the evolution of business brings benefits not only to investors, but to society.
Therein lies an ideological battleground that has been intensifying, especially in light of the political polarization in the United States. There, the most conservative segments have decided to close ranks against ESG issues, arguing that the role of companies is only to make a profit for shareholders, that this alone is sufficient for economic development, and that anything that deviates from this – such as environmental concerns, diversity, gender equality, etc. – ends up compromising financial results. The echo of such reasoning in the cacophony of social media has made it difficult to have a frank and productive debate on the topic.