Posted on 03/11/2023 6:17:58 AM PST by MtnClimber
Corporations that remain neutral on social and political issues outperform companies that lean left.
Capitalists invest money, and manage companies, to do well financially. Proponents of so-called woke capitalism claim that companies can do “well” financially by doing “good” politically. The idea is that advancing a political agenda will also enhance profits and shareholder returns. Whether this does good is a matter of opinion, but whether it does well can be measured.
Woke capitalism makes its way into financial markets through an ill-defined concept known as environmental, social and governance investing. Huge investment managers use their ownership of shares to pressure companies to jump on the ESG train. But while individual investors are free to support whatever causes they wish with their dollars, those who invest other peoples’ money have a fiduciary duty to focus solely on clients’ financial interests. Thus it’s important to know whether politically focused companies actually do produce superior financial results.
To answer this question, we used research from 2ndVote Analytics Inc., a company that scores U.S. large-cap and midcap companies on their social and political engagement on five-point scale. Analytics evaluates company data on six social/political issues—the environment, education, abortion, Second Amendment rights, other basic constitutional freedoms and support for a safe civil society—and also generates a composite score. Company scores, updated quarterly, range from 1 (most liberal) to 5 (most conservative), with 3 meaning neutral or unengaged.
On average, roughly a quarter (or 221) of the S&P 900 large/mid-cap companies studied scored 3—taking no political or social stance on any of these six issues—during the period from June 30, 2021 (when the data was first available), through Jan. 31, 2023. Of the remaining companies, the political tilt was strongly to the left. More than 59% scored liberal, and under 15% conservative.
(Excerpt) Read more at wsj.com ...
What is “ESG”?
A Marxist plot.
Easily State Gotten
ESG is a scam.. weaponized by phony social justice warriors.
What does that mean?
So no. I will not subscribe to any LSM media so anyone who can post more details, thank you!
Investing in political correctness is always a bad idea.
Unique products, a solid bottom line, excellent R + D, CEO and customer loyalty are way more important.
This is why Disney is in serious trouble.
Products are not unique, they have pissed off 50% of their customers and their prices are out of control.
“an objective measurement or evaluation of a given company, fund, or security’s performance with respect to Environmental, Social, and Governance (ESG) issues.”
ESG caused Silicon Valley Bank to fail. No idea if that’s true or not but putting that thought into people’s heads is probably a good thing, true or not.
Environmental, Social, Governance. Woke on a massive scale.
people buy those stocks to feel good about themselves...
I feel good about myself driving my internal combustion engine car on a twisty road with the settings on “Race 1” mode.
amen
Here is the ESG reporting from Silicon Valley Bank ...
https://www.svb.com/about-us/living-our-values/esg-reporting
As you can see on the ESG page, they were even offering reporting for the WORLD ECONOMIC FORUM ....
https://www.svb.com/globalassets/library/uploadedfiles/wef-index-2022.pdf
Seems banks might need to get back to focusing on sound banking.
Thanks, that explains a lot.
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