Those who resist will find themselves not only on the wrong side of history but also, as the leading consultancy McKinsey suggests, at a competitive disadvantage. The COVID-19 crisis has seen many companies rise to the challenge, and the business and financial press are reporting an acceleration in ‘responsible’ capitalism. See the FT’s Moral Money series to follow this trend.
There is growing evidence that companies taking a long-term view perform better as required by stakeholder capitalism. In ‘The Case for Stakeholder Capitalism’ (Nov 2020), McKinsey report that ‘companies with strong environmental, social and governance (ESG) norms recorded higher performance and credit ratings through five factors: top-line growth, lower costs, fewer regulatory interventions, higher productivity, and optimised investment and asset utilisation’.