ESG
“DO SWEAT THE SMALL STUFF”: HOW ESG MISSTEPS IMPACT FUTURE PERFORMANCE New research supports the view that companies that neglect stakeholders pose greater risks to investors, says Katherine Davidson, Portfolio Manager, Global & International Equities, Schroders.
Schroders has written extensively on our concept of “corporate karma” – the idea that what goes around, comes around with regard to how companies treat their stakeholders. Since the start of the pandemic, we’ve written about our belief that a new social contract is emerging, particularly in relation to how employers treat their employees, and we’ve shown how it’s possible for companies to balance the needs of all stakeholders.
We’ve also looked at how well companies are supporting their stakeholders. Above all, we’ve tried to emphasise why corporate karma is crucial for your investment returns. Companies that look after their stakeholders are less likely to experience controversies such as customer boycotts, strikes and walkouts, litigation, regulation, environmental or occupational accidents. This implies a lower risk profile for your portfolio.
“Companies that look after their stakeholders are less likely to experience controversies such as customer boycotts, strikes and walkouts, litigation, regulation, environmental or occupational accidents.”
