Most economists would argue that the core motive of CEOs is profit maximisation, so it is inefficient to be concerned for wider socio-economic issues. However for modern long term investors, it is important to choose companies who satisfy the needs of the communities they operate in.
Many companies recognise that ignoring contemporary socio-economic and environmental issues creates problems for them, destroying their public perception or breaking down their supply chain.
Some argue that the companies who have shown some wider social awareness are simply using philanthropic acts as a facade of 'wokeness', to maintain their long term customer base and pertinence.
Yet they are not actually creating fundamental change even though they have the means to do so, and they should be the economic agents driving systemic change.
Firms propose counter measures that distract the public, instead of real legislative changes, such as the accountable capitalism act in the U.S..
Certain businesses are disguising their true motives, through solely symbolic social media campaigns. If the largest, market dominating firms truly wanted to create change, they would agree to government regulation and stop avoiding tax, instead of publishing empty public statements. Such revenues are essential to mitigating the climate crisis.
Written by Eve Nicholson
Artwork by Mrishana
