America’s Top Responsible Companies (ESGs/CSRs)
Consumers are becoming increasingly more thoughtful about the brands they support and buy from. In the U.S. and UK, 68% of online consumers might stop buying from a brand with weak corporate responsibility (CSR) practices.
Because of this, companies need to ensure their corporate social responsibility (CSR) initiatives are well-designed, known, and appreciated. Companies understand it’s no longer just the right thing to do.
As demand for transparency and corporate responsibility escalates, responsible practices are transitioning from a nice-to-have to a need-to-have.
Organizations need to act and transform. Social Rating practices are growing, and international standards and certifications are widespread.
In 2021, Newsweek and Statista prepared a list of the 20 most responsible American companies, using a methodology that included a pre-screening, an in-depth CSR document review, and a consumer survey.
However, with such hype over CSRs and ESGs, it is advisable to watch out for possible “greenwashing” and “social washing” cases.
While I welcome the growing attention and interest in Impact Finance Investing, I understand Damodaran’s skepticism over ESG Investing and Tariq Fancy’s Confession of a Sustainable Investor. Consumers and investors need to go beyond social ratings or take them with a grain of salt. After all,
when a measure becomes a target, it ceases to be a good measure (Marilyn Strathern).
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