Opinion | Hong Kong businesses can help to end the street protests, by putting stakeholders above shareholders
- A profit-at-any-cost corporate mindset, especially in real estate, has created deep inequalities, a major factor behind the protests roiling Hong Kong
- Companies that can invest in employees and focus on delivering value to society will be initiating a paradigm shift that will ultimately benefit shareholders
Recently, 181 global CEOs at the Business Roundtable signed a new “Statement on the Purpose of a Corporation”, pledging to lead their companies for the benefit of all stakeholders. In short, the statement commits them to deliver value to customers, invest in employees, deal fairly and ethically with suppliers, support the communities in which they work and generate long-term value for their shareholders.
This latest development represents a continuation of a movement that encompasses creating shared value, impact investing and social entrepreneurship. It recognises that businesses have a role to contribute to society that extends beyond corporate social responsibility (CSR).
Contrast this with Hong Kong, where not long ago an executive director of a major locally listed company told me that he did not believe in CSR. He argued that, because his company paid taxes, it should be the government’s job to address social issues.