The term “ESG” (Environment, Social & Governance) has become the by-word for conscious investors and therefore a serious consideration for companies if they are publicly traded and are seeking to secure investment. The intent is to have standards in place that force companies to demonstrate that that they are exercising inclusion of many minority interests and that in this demonstration companies are explicitly correcting historical misrepresentation of these special interests groups in various positions including the executive.
John Ralston Saul wrote an exquisite book called Voltaires bastards in which he demonstrates how the practical application of blind reason can transform policies and practices to become the opposite of what was the original intent often with a moral poverty as an outcome.
Setting employment quotas based on race, gender, or religion goes against an already existing employment standard that was designed to inhibit employment bias. Ironically, ESG empowers employment bias that will create devastating disincentives for the non special interest groups. This moral poverty will inevitably reduce quality of available candidates for key positions since the cards are stacked. Merit is becoming insufficient for employment.
It would be extraordinary if Canadian hockey or American football teams were under the same ESG guidelines. To have a team that had a full 50% representation by women, 30% Indigenous, 30% LGBQ would be a wonder to behold. I am unsure this team would perform as well as a team that hired on merit regardless of any social interest!
The state of California sees itself as one of the more liberal and “forward thinking” states I the USA. It has established a series rules to control the development of neighbourhoods in an effort to protect the public interest. The interesting result is that the level of homeless camps have become an eyesore in suburban neighbourhoods as well as the part of the urban core. Millions of people have become homeless and literally disenfranchised from regular society in such volumes that it has itself become regular society.
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