Not your grandmother’s capitalism: Meet tomorrow’s socially conscious capitalist

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Profit and purpose ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 
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On Point | TODAY'S NEWS. TOMORROW'S INSIGHTS
On Point | TODAY'S NEWS. TOMORROW'S INSIGHTS
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In the news
‘Impatient capital.’ This year is looking like a landmark time for proxy battles, specifically around environmental, social, and governance (ESG) shareholder proposals. Shareholders are amassing support for numerous, wide-ranging societal issues that include carbon emissions, pay equity, and transparency into discrimination and harassment allegations. If this year’s extensive proposals pass, or even gain serious support, the door may very well open to even more such proposals next year. As one expert put it, “Formerly patient capital has become impatient.” [WSJ]
‘Yes, both.’ There’s an underlying tension within the ESG space: Should you invest in companies that do good societally, environmentally, and governance-wise, full stop, or in companies that aren’t doing badly within those dimensions and have stronger financial performance? To truly effect change, the ideological case must be combined with the economic, says Wharton School of Business professor and ESG expert Witold Henisz. [Wharton]
“You realize that you can’t be a successful company if the planet is on fire. You can’t be a successful company if social division is causing the political order to break down.”
On McKinsey.com
___ capitalism. About a decade ago, Fortune Media CEO and journalist Alan Murray began noticing a shift in the conversation about capitalism, specifically around the social impact of business. He heard phrases like “conscious capitalism,” “compassionate capitalism,” and “inclusive capitalism,” pointing to a larger sense that companies weren’t doing as much as they could to positively impact society. That’s led to the more recent stakeholder capitalism movement, which, Murray notes, is here to stay.
Socially conscious. Companies today are uniting profits with social purpose, and that’s a marked shift from how they once generally avoided controversial topics that may not have affected their bottom line, according to Murray. He spoke to McKinsey Publishing’s Raju Narisetti about his new book, Tomorrow’s Capitalist: My Search for the Soul of Business, for a recent edition of Author Talks. Read the full interview for the fundamental shifts Murray’s seen in how CEOs are tackling social issues, and why saying nothing is no longer an option.
— Edited by Justine Jablonska   
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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:22 - 25 May 2022