Commentary that I feared might be a bit ‘edgy’ a year ago has now become commonplace.
“The Real Pandemic Danger Is Social Collapse,” Foreign Affairs warned in its March 2020 issue, adding, “the most important role economic policy can play now is to keep social bonds strong under this extraordinary pressure.”1An analysis from BlackRock’s Philipp Hildebrand and Brian Deese2concluded that firms with a better record on social issues and governance were shown to have been more financially resilient during the coronavirus market crash.3Norway’s trillion-dollar ‘oil fund’ indicated that it would give corporate governance increased attention going forward.4“A company’s ability to navigate environmental and societal disruptions, combined with governance practices, can have a profound effect on its ability to mitigate downside risk and create long-term value,” agreed Aegon Asset Management.5“Good governance is not a ‘nice-to-have’, it’s a must- have,” argued the UK’s Institute of Directors.6And the World Economic Forum (WEF) argued that the pandemic had served to highlight the importance of “integrated corporate governance” informing the strategy and operations of companies.7 (Governance: Putting the G in ESG)
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