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.

Beyond ESG: Reforming Capitalism and Social Democracy

There is a rising demand for a reform of capitalism in the wake of increased income and wealth inequalities, the effects of climate change and environmental and industrial disasters, the growth of global trade, the internationalization of cultures, 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.

We must first understand how these phenomena came to be and what they really mean before arriving at solutions. While it is necessary to make certain reforms to the functioning of capitalism, there is a danger that governments will put themselves under the pressure of more or less well-informed groups, with policies based on good intentions but with bad results. Beyond ESG: Reforming Capitalism and Social Democracy analyzes various reform projects, discusses the concepts of ethics and equity (environment, water, life, remuneration, inequalities, ESG) and proposes projects for in-depth reforms of capitalism and social democracy.