Beyond ESG: Reforming capitalism and social democracy

Abstract

Several voices are rising to demand an in-depth reform of capitalism in the wake of the increase in income and wealth inequalities of the last four decades, the climate urgency in a local global world, and the financial crisis of 2007–2010. At the forefront of this movement are different groups aiming at redefining the role of businesses around socially responsible stakeholders’ governance. There is a real danger that governments will be put under pressure from misinformed constituencies and will want to play Goethe’s sorcerer’s apprentice: too often, good intentions are but a paved road to hell. In this document, I analyze various reform projects, I discuss the concepts of ethics and equity (environment, water, life, remuneration, inequalities, ESG) and I propose projects for in-depth reforms of capitalism and social democracy.