Stakeholder Capitalism – Embracing Today’s Opportunity
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Evidence is convincing that a credible ESG commitment results in higher employee engagement, increased productivity, creativity and courage; all of which are directly linked to higher profitability. Customers evaluate a company based on where it stands on matters of principle, such as the environment, social justice, and inclusive corporate governance. By establishing shared values with customers, the company earns improved brand loyalty and trust, both of which drive increased top line growth. In addition to developing long-standing, trusted customer relationships, a commitment to ESG can result in other drivers of profitability such as improved social contracts with employees, direct cost reductions, more effective regulatory and dialogues, and better use of capital. All in all, ESG is good business.