Capital prefers predictability

“Popular power just gained a stranglehold on the market economy.” ThenMinister of Finance Jyrki Katainen uttered these famous words in 2010 after the EU’s finance ministers agreed on the first major aid package to prevent a total economic collapse in Greece and the loss of credibility of the Euro as a currency. At the time, the comment seemed mostly absurd in its neglect of the fact that society and economy always live in close symbiosis. In retrospect, I experience it as one in a series of time markers for when the world economy entered a new phase of development.

In the years that followed, the desire to create global growth via free trade and integration began to be nipped in the bud by geopolitical agendas and nationalist, if not outright populist, rumblings. A lot has happened: Brexit, Russia’s war of aggression in Ukraine and annexation of Crimea, the Trump administration’s protectionist policies, and China’s increasingly unabashed aspirations for world conquest.

As a result of this development, we’re now living in an era in which everything related to business and investment activities is affected by political processes to a greater extent than before.

At the same time, sweeping change is underway. In sustainability work (which one talks about in terms of environmental, social and governance sus- tainability, commonly abbreviated to ESG), the emphasis has been on the first two letters – on environmental impact and social aspects. The “G” focuses on corporate governance.

In the future, the concept of governance will increasingly be about good governance in society at large. It is repugnant to invest capital blindly. In well-structured governance, political processes are characterised by transparency, predictability, equal treatment and openness to scrutiny and criticism. Most often, if the “G” is in order, the “E” and “S” are also well looked after. This applies to both companies and societies.

The symbiosis between economic activity and societal development has the best conditions to create added value when the governance of both companies and society at large is managed according to high ethical and professional standards. Capital prefers such contexts.

Björn Teir

Maren Jonasson, Editor:

For a few days in April, the staff of SLS and the Swedish Cultural Foundation in Finland received new work responsibilities helping to furnish and prepare 22 rental flats in Helsinki for Ukrainian refugees.

“When we were offered the opportunity to do this, I said yes without a moment’s hesitation,” says Editor Maren Jonasson of SLS.

The apartments were set up in close cooperation with the Home Accommodation Support Association and the Ukrainian Association in Finland, which also selected the flats’ residents on humanitarian grounds.

“Contributing money to disaster funds is a good way to help as an individual. But it felt especially good to work together with my colleagues, from the building caretaker to the CEO,” says SLS Marketing Manager Agneta Rahikainen

The refugees will be able to live in the apartments free of charge until May 2024.