The ESG funds are part of it. But I think the other part of it is much simpler. And this is the part where if you just talk to some of these middle managers who actually implement this stuff, you start to understand why it's actually being implemented with such fervor instead of simply paid lip service to like a lot of corporate initiatives that are pushed from on high and simply ignored once they filter down into the rest of the company.
These corporations are all managed by Smart People who also think they're Good People. And they aren't philosophers or activists: they're managers. And the only way they really know to do anything is through metrics and process manipulation and iterative improvement.
Then they read an article in Harvard Business Review that tells them how they can do "activism" through metrics and process manipulation and iterative improvement. And then they're told that this is not only doing good, it's good for business. So they jump at the opportunity.
Not to mention the Not Smart People HR teams that they hire, which have gone through activist training boot camp and are most likely members of a "marginalized group", where their goal to #DoBetter is more important than the company's success.
I know at my employer the managers had performance goals related to Diversity and Inclusion, so they had salary and bonus incentives to implement that stuff. Beyond the simple fact that the management track selected for people who were supportive of those policies.
The ESG funds are part of it. But I think the other part of it is much simpler. And this is the part where if you just talk to some of these middle managers who actually implement this stuff, you start to understand why it's actually being implemented with such fervor instead of simply paid lip service to like a lot of corporate initiatives that are pushed from on high and simply ignored once they filter down into the rest of the company.
These corporations are all managed by Smart People who also think they're Good People. And they aren't philosophers or activists: they're managers. And the only way they really know to do anything is through metrics and process manipulation and iterative improvement.
Then they read an article in Harvard Business Review that tells them how they can do "activism" through metrics and process manipulation and iterative improvement. And then they're told that this is not only doing good, it's good for business. So they jump at the opportunity.
Not to mention the Not Smart People HR teams that they hire, which have gone through activist training boot camp and are most likely members of a "marginalized group", where their goal to #DoBetter is more important than the company's success.
I know at my employer the managers had performance goals related to Diversity and Inclusion, so they had salary and bonus incentives to implement that stuff. Beyond the simple fact that the management track selected for people who were supportive of those policies.