LETTER | The Association for Welfare, Community, and Dialogue welcomes the initiative of Malaysian-based companies that have embraced Environmental, Social, and Governance (ESG) into their corporate strategy.
This augurs well for the evolution of corporate Malaysia from mere shareholder capitalism to stakeholder capitalism.
Recognising forward-thinking ESG practices, 64 companies were awarded for their exemplary efforts in August 2024.
This is clearly in line with Malaysia’s pledge to reduce its greenhouse gas emissions by 45 percent in 2030.
Having also attended the training on ESG lately, I realise its potential in revolutionising corporate culture if implemented with integrity and progress in mind.
The ESG vision of sustainability, which preserves the planet, cares for employees and the community, and sustains the derivation of profits, will certainly pave the way to building a more equitable society in Malaysia.
The various socioeconomic problems that have besieged countries around the world are rooted in corporate visions that are merely seen from the owners’ and shareholders’ interest, with the backing Governments with neoliberal ideologies,that gives a free reign to conduct business without ecological and societal accountability .
Such regressive visions that emerged in the 80s and continued for decades have created a national and global wealth gap between the rich and poor, that culminated in the financial crisis in 2008.
In the West, a deep and long economic recession followed, which reinforced inequality in society and resulted in a popular uproar against the system, elites, and immigrants.
The dissatisfaction among the masses was transferred to the political realm that empowered right-wing political parties in Europe, which can be felt to this day.
The book on stakeholder capitalism by Klaus Schwab describes these events and explains the shortcomings of shareholder capitalism and its impact on the decline of centrist parties in Europe.
The Malaysian government and the corporate sector could learn from the West on the failure of shareholders' capitalism and take steps to embrace sustainable development goals that are spelled out in the ESG principles.
It is time for the country's small and medium-sized industries to begin the journey to embrace ESG principles in their corporate vision.
It could emulate the examples of 64 companies mentioned above that could be used as a benchmark.
The government should aid these companies through incentives and tax breaks that would place these companies in the right direction towards reducing their greenhouse gas emissions by 45 percent in 2030.
It's time for Malaysia’s corporate world to embrace ESG, which would aid in transforming Malaysia into a more equitable society and reduce social conflicts.
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
