We humbly propose a new definition for ESG more appropriate for businesses.
Environmental
It is the responsibility of all companies public & private to contribute to a strong economic environment by running profitable enterprises that efficiently add value to society. Well-run companies also seek to minimize the inefficiencies of pollution.
Social
There is no more important societal need than for businesses to provide access to fulfilling, high paying jobs and profitable business opportunities. A productive society is a happy society. Businesses also contribute to society by providing their clients with the best available products and services.
Governance
While business managers can’t govern the world, they must govern their own sphere of influence. Managers are obligated to pursue excellence in their operations for the benefit of their customers, employees and shareholders. A well governed company does not lay-off employees during downturns, but rather taps retained earnings to cushion the impact of business cycles on their staff. Also, good managers don’t price gouge their customers and prioritize the provision of quality products and services at a fair value.
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