Recently there has been a lot of discussion about ESG. Especially with the SEC’s announcement regarding the topic in March. Working as a recruiter in the space I can say things have gone completely bonkers in terms of hiring with everyone scrambling to get a top ESG talent into their company.
While the scramble will probably only be this intense for several months, many things about how businesses operate are going to be changing, in some cases drastically.
Today I want to offer my thoughts about what the future might be like because of this shift towards an ESG-aligned world.
Profit Distribution
In economics, you can earn money by creating value from scratch or from capturing the dollars of another market. In many cases, there often exists a disproportionate distribution of the income from the sale of goods. This is done on small and large scales. On a broader scale, we can see how large corporations extract resources from developing countries, pay the local farmers/workers what they claim is “a good wage” and then proceed to sell their product for large profits, perhaps if they are “enlightened” they offer some sort of profit-sharing scheme to their employees and then pocket large salaries or push the money into other assets.
