Business Social Responsibility Beyond ESG
Tackling Poverty & Disadvantage through the Global Social Capital Fund
The business community has long recognized its social obligations extend beyond just generating profits and have adopted ideas like ESG (Environmental, Social and Governance) also known as ‘stakeholder capitalism’.
ESG has either failed or has had limited success in tackling social issues like inequality, poverty and disadvantage and has been criticized as nothing more than a coat of green paint over business-as-usual.
The Global Social Capital Fund provides a better way of tackling poverty and disadvantage.
There is growing concern that the business sector is shirking its social responsibilities through clever accounting, meaningless ESG commitments and by profit-laundering through tax havens.
In a globalized world, the top-down approach of taxation, regulation or other localized measures are ineffective in dealing with this sort of irresponsible behavior.
PByT provides a bottom-up solution through the concept of a Global Social Capital Fund.
THE GLOBAL SOCIAL CAPITAL FUND
The Global Social Capital Fund frees business to pursue its primary goal of maximizing profits, while meeting its societal obligations through a social capital levy built into the PByT subscription fee for the Business & Group members.
The proceeds of the fund can used to build, maintain and preserve social capital, starting with providing funding to the non-profit sector, which is the engine room of global social capital.
For the business sector, the Global Social Capital Fund will create a level playing field, which neatly balances shareholder primacy with societal obligations and expectations while strengthening the free market economy.
Longer term, the fund will democratize economic power, resulting in a more stable global economy, a more efficient and effective commercial sector and a more fair and more just society for everyone, everywhere.