what if the ESG concerns are grounded in religious beliefs?
It's an interesting article by an author attempting to defend ESG citing the Hobby Lobby case. Key argument:
"The thrust of the criticism is that for-profit, commercial corporations should base their decisions solely on conventional business concerns — that is, interests that further the purpose of making money for the enterprise. Decisions grounded in environmental values or the betterment of society or programs designed to bring marginalized groups into the company and create a workplace environment where they can thrive are problematic distractions at best. To ESG critics, these are costly, misguided distortions of the profit maximizing free enterprise system."
Conclusion:
"Without a clear answer to that question, contemporary critics of ESG are vulnerable to the challenge that they accept religiously based ESG, but reject its secular counterpart — not because they think company decisions must focus exclusively on profits, but because certain religious beliefs comport with their political ideology and secular values do not."
Thoughts? Does the application here actually apply?
"The thrust of the criticism is that for-profit, commercial corporations should base their decisions solely on conventional business concerns — that is, interests that further the purpose of making money for the enterprise. Decisions grounded in environmental values or the betterment of society or programs designed to bring marginalized groups into the company and create a workplace environment where they can thrive are problematic distractions at best. To ESG critics, these are costly, misguided distortions of the profit maximizing free enterprise system."
Conclusion:
"Without a clear answer to that question, contemporary critics of ESG are vulnerable to the challenge that they accept religiously based ESG, but reject its secular counterpart — not because they think company decisions must focus exclusively on profits, but because certain religious beliefs comport with their political ideology and secular values do not."
Thoughts? Does the application here actually apply?
Across the investment management space, the focus around Environment, Social and Governance (ESG) practices has both shifted and heightened notably in recent years. A once niche industry, ESG adoption by asset managers has evolved into an all-encompassing transformation with ESG considerations working their way into almost every operational facet of a firm.
The impetus behind this movement is partially driven at the federal level. Earlier this spring the Securities and Exchange Commission announced sweeping regulatory reforms to climate disclosures. New rules would require public companies to report on climate-related risks
that have a material impact on financial statements and business strategy as well as the steps they are taking to mitigate them. Firms would also be required to calculate their carbon footprint using Greenhouse Gas (GHG) emissions standards with independent verification. Pending approval, a phased rollout would commence
in 2024.
Empowering diverse investors with the financial knowledge and confidence they need to share in the wealth that markets can create.
• Supporting diverse entrepreneurs with the necessary resources to strengthen and scale their businesses and contribute to the prosperity of society.
In 2021, the Nasdaq Foundation selected six partnership organizations through the Quarterly Grant Program. The services offered through these partnerships provide a wide range of support for Black, Latinx, and Indigenous founders and entrepreneurs, with a strong focus on women, as well as an introduction to financial careers For students of color.
Anyone missing in that supported group?
I see no reason whatsoever that businesses, regardless of whether they're structured as corporations, should not reflect their owners' values.
He also glosses over the fact that much of ESG involves the coercion of other parties. If the corporations in question were Hobby Lobby or Dick's Sporting Goods or Chic-Fil-A or a multitude of others, that is one thing: their patrons can choose to continue their patronage or not. When the "corporations" include government-controlled banks, however, we cross over a significant dividing line.
If "ESG" = "the world is over-populated and should be controlled by an elite cabal", companies that pursue that won't do well because almost no one on earth thinks that. I was taking it to mean companies trying to operate within values that presumably their shareholders would support. The examples from the article are the environment, supporting equality for all people, and supporting Christian values. Companies can support those without supporting the absurd elite cabal stuff.
The reason I posted this was to point out the insidious and disingenuous attempts by these elitists to pass off their ideology as just another religion or ideology which won't hurt anyone or infringe upon their liberties when the truth is that it only exists to infringe.
Is that because the a) the word ESG means by definition an elite cabal trying to rule the world, b) any large business whose owners try to make the business support their values inevitably turns into an elite cabal trying to rule the world, or c) something else?
The point is that ESG IS an elitist mindset which doesn't permit any other ideology - unlike most world religions like Christianity which don't directly interfere in the marketplace.