This paper provides an examination of some problems caused by the concentration of influence in the capital markets of developed countries. In particular, I argue that large asset managers exercise quasi-political power that is not democratically legitimate. In section two, I will examine the economic driver behind the size and power of the big asset managers: the passive investing revolution. I will discuss several respects in which this revolution has fundamentally changed capital markets, most notably by making a large share (...) of investors universal owners. In the third section, I argue for my central analytical conjecture: asset managers exercise quasi-political power. They use their influence to shape the rules of the game in public capital markets in order to implement social and environmental policies that have traditionally been the exclusive purview of states. “Asset manager capitalism” is a recent term coined to refer to the contemporary system of corporate governance that succeeded the Berle and Means corporation with its dispersed ownership; the argument of this section is that asset manager capitalism is also a new political-economic regime. In the fourth section I defend my central normative claim: asset manager capitalism is an untenable and illegitimate political-economic arrangement, for at least two reasons. First, the power of asset managers is not checked by any institutional constraints, and is not rendered legitimate by any democratic process. More fundamental than this procedural critique is an argument that the interests of asset managers could not be aligned with the public interest, given the fact that the distribution of capital is highly unequal. I conclude by discussing several proposals to reform asset manager capitalism. (shrink)

An updated excerpt from the larger paper AI Human Impact. Excerpt explains why ESG investing requires Updating for the AI economy.

Does AI conform to humans, or will we conform to AI? An ethical evaluation of AI-intensive companies will allow investors to knowledgeably participate in the decision. The evaluation is built from nine performance indicators that can be analyzed and scored to reflect a technology’s human-centering. When summed, the scores convert into objective investment guidance. The strategy of incorporating ethics into financial decisions will be recognizable to participants in environmental, social, and governance investing, however, this paper argues that conventional ESG frameworks (...) are inadequate for AI-intensive companies. To fully account for contemporary technology, the following categories of evaluation will be developed and featured as vital investing criteria: autonomy, dignity, privacy, performance. With these priorities established, the larger goal is a model for humanitarian investing in AI-intensive companies that is intellectually robust, manageable for analysts, useful for portfolio managers, and credible for investors. (shrink)

У статті розглянуто сучасні особливості корпоративного менеджменту ТНК (транснаціональних компаній), які працюють на ринках України. Розглянуто сутність, загальні аспекти діяльності ТНК, виділено основні риси транснаціональних компаній (світова присутність, масштабність, інноваційність, гнучкість та адаптивність, вплив на світову політику та економіку), тип ринкової структури. Виділено основні особливості організації діяльності в умовах географічної розрізненості представництв та підрозділів ТНК. Наголошено на необхідності впровадження якісного корпоративного менеджменту с урахуванням існуючих особливостей діяльності ТНК, широти охоплення різних національних ринків. Описано сутність та основні риси корпоративного менеджменту, його (...) мету та основні завдання. Виділено та охарактеризовано основні складові фактори корпоративного менеджменту ТНК (метод управління ТНК, організаційна структура (ієрархія управління), система відносин, дотримання принципу інформаційної прозорості бізнесу, модель корпоративного управління, особливі складові корпоративного менеджменту ТНК), описано їх особливості. Позначено основні ієрархічні рівні структури управління ТНК – вище керівництво (топ-менеджмент), регіональне керівництво, функціональне керівництво та місцеве керівництво, виділено їх особливості. Наведено та охарактеризовано основні аспекти інформаційної прозорості ТНК, що включають такі важливі розділи як: прозорість фінансової звітності, прозорість корпоративного управління, прозорість стратегічної інформації, прозорість даних про продукцію та послуги, прозорість у частині соціальної відповідальності бізнесу. Виділено та описано моделі корпоративного менеджменту, що застосовуються у діяльності ТНК в Україні (централізована та децентралізована, матрична та комбінована моделі). Наголошено на необхідності дотримання важливої особливості корпоративного менеджменту ТНК – кросскультурності. Зроблено висновки щодо якості корпоративного менеджменту ТНК в Україні. Позначено подальші напрями дослідження у цій темі. (shrink)

Worsening energy crises and the growing effects of climate change have spurred, among other things, concerted efforts to tackle global problems through what the United Nations calls Sustainable Development Goals (SDGs). These are in turn argued to be best achieved via the adoption of environmental, social, and corporate governance (ESG) as the vehicle for guiding our efforts. However, though these things are often presented as the solution to global issues, they are increasingly being used as a means to centralize power (...) and exacerbate growing authoritarian trends. This article aims to demonstrate how the narratives surrounding ESG mask this reality, taking as a solution one of the foundational causes of global wealth and power disparity. (shrink)

Sustainable Finance is the procedure of taking Environmental, Social, and Governance (ESG) factors into consideration when making financial investment decisions (Zheng et al., 2021). Changing climate, moderation, adaptation, and the larger environment are all causes of environmental issues. Conservation of biodiversity, pollution avoidance, and circular economics are all part of it. Labor relations, investments in human capital and communities, and human rights challenges are examples of social factors. The governance of governmental and non - governmental businesses, including management structures, employee (...) relations, and executive payment, is critical in ensuring that social and environmental factors . (shrink)

This paper examines ethics in finance, specifically related to responsible investment. In recent years, socially responsible principles are becoming the de facto standard not only for socially responsible but also for profitable investing. For instance, the United Nations developed the Principles for Responsible Investment (PRI) in 2006, which require institutional investors to incorporate ESG (Environmental, Social and Governance) issues into investment analysis and decision-making processes. This raises the following question: can responsible investments be justified from an ethical point of view? (...) In this paper I first explain responsible investments. Then, I turn to the ethical foundation of responsible investments. There are two arguments for responsible investments. I argue that both fail. Therefore, my conclusion is that the ethical foundation of responsible investments is not firm. (shrink)

The article is aimed at studying environmental responsibility of multinational enterprises in electronics and IT sectors. The main aspects of environmental policy of global business enterprises have been systematized, their characteristics for such high-tech market leaders as Alphabet Inc, IBM and Intel Corporation have been given. Corporate policies have been analyzed and compared in three aspects of environmental activity of the companies selected for this study: waste recycling, energy use and environmental impact. The results of the analysis of eco-responsible companies’ (...) practices show that each company forms management style and tools by implementing environmental responsibility, but none of them has managed to hold higher positions in the ranking of business environmental responsibility. Reserves for activating eco-oriented companies’ policy in IT sector have been identified. (shrink)

The exacerbating energy crises that are wreaking havoc around the globe, as well as the apparent effects of climate change, have spurred, amongst other causes, the concerted orientation towards amelioration aims such as the United Nations Sustainable Development Goals (SDGs) and environmental, social, and corporate governance (ESG). Although often presented as not only the solution to these global problems (if adopted wholesale), they are increasingly being used as a vehicle to traffic the centralisation of power and exacerbate growing authoritarian trends. (...) This chapter aims to demonstrate how the narratives surrounding ESG package the problem into what might otherwise be the solution to global problems, missing the forest for the trees. (shrink)