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https://www.wsj.com/articles/capitalism-after-the-coronavirus-11593470102?mod=opinion_lead_pos5
Al Gore pimps for responsible capitalism regarding Covid 19. But notice
that he entirely fails to even hint at the issues of habitat destruction
and factory farming. So much for that idea.
"We wrote an op-ed for these pages in 2006 titled “For People and Planet,”
in which we argued for a long-term, sustainable, multistakeholder approach
to business. We said America’s corporate leaders should put environmental,
social and governance factors at the heart of their decision-making.
Fourteen years later, the idea has become a proven model for business. The
Business Roundtable and the British Academy have both strongly endorsed the
multistakeholder approach in the past nine months. Why? Because sustainable
capitalism is better suited than business as usual to the challenges we
face.
Voluminous research has shown conclusively that businesses properly
integrating ESG factors into their plans are typically more successful and
profitable. As the value of this paradigm becomes widely recognized,
investors who fail to take it into account may be at risk of violating
their fiduciary duty to their clients.
As economies reopen around the country, it is essential that policy makers
don’t default to pre-pandemic thinking. Covid-19 with all its unfolding
tragedy presents a once-in-a-century obligation to rethink the
relationships among business, markets, government and society. What is
desperately needed, and what we must deliver, is a sustainable form of
capitalism.
Investors have a critical role to play. All investments made today must
factor in long-term climate and societal implications. Indeed, the shift to
a zero-carbon, inclusive business model is already well under way. Entire
sectors are beginning to be transformed: energy, agriculture and food,
fishing and ocean protection, forestry, architecture and construction,
mobility and transport, and other carbon-intensive sectors such as
chemicals and heavy manufacturing. We believe this transition will be the
most significant change in economic history. The opportunities are ready
now. We need to invest in them with the same sense of urgency that people
have demanded in mitigating the pandemic.
Already, the pandemic has revealed what companies are truly made of.
Health-care firms have played vital and visible roles in sequencing the
virus, testing, and delivering personal protective equipment. Companies in
other sectors have also stepped up by helping restaurants pivot to digital
ordering channels or directing small businesses to the financial support
they need to get through the crisis.
Some companies have responded by adopting a responsible, long-term
perspective on this challenge—absorbing costs where necessary to protect
their employees. Major food retailers are sharing data, logistics
infrastructure and even staff in a huge effort to maintain food security.
This unprecedented cooperation is made possible by regulators waiving
normal rules on competition.
CEOs must put the welfare of their employees first. People shouldn’t have
to worry about getting hurt or getting sick when they come to work, and
those who are working from home need support too. It goes without saying
that those who do get sick will need time to recover and those who lose
family members or friends will need space to grieve.
African-Americans are suffering from Covid-19 more than any other race, in
part because their much higher exposure to air pollution increases the
mortality rate from the virus. The mental-health challenges and financial
pressures related to the pandemic are also affecting some populations more
than others.
Companies making cuts in pay or staff numbers should lead from the top. The
C-suites should be taking the largest cuts to total compensation, and we
are pleased that many companies have adopted this approach. We also ask
CEOs to focus on their companies’ long-term strengths. It is far wiser to
prioritize capital allocation in ways that will produce results in 2021 or
even several years hence, instead of chasing the next quarter’s numbers.
For some companies, there may be opportunities to bring forward a long-term
project or make a strategic acquisition.
Finally, we want CEOs to accelerate their efforts on climate action. For
perspective, it is worth recalling the shocking wildfires that have struck
Australia, California and the Amazon in recent years. There is an obvious,
if uncomfortable, parallel between our still inadequate responses to the
tragic suffering of Covid-19 and to the fast-growing consequences of the
climate crisis. We ignored the warnings
