How to Integrate Social Engagement Sustainably in Business? Max W. Römer dedicated himself to this question on the occasion of the 29th Königsteiner Salon. Pure profit maximization is not suitable as a long-term survival strategy for companies, so the thesis of the speaker. It is much more sustainable to create standards that promote social engagement in entrepreneurial activity.
With the ESG standards, the world community has given such a framework. The acronym stands for “Environmental, Social and Governance”, ie environment, social and good corporate governance. But only a small proportion of companies have officially committed themselves to implementing these standards.
The commitment to the common good is initially an investment. After all, it initially means waiving part of the profit. In the long term, however, entrepreneurs ensure that they survive. Through credible social commitment, a company not only increases its attractiveness for employees, but also meets the growing need of many customers for sustainably produced products.
More and more companies recognize the importance of the criteria of sustainable business management. Because not only consumer decisions are increasingly derived from it, for investors, the issue has gained in importance in the past years (see Handelsblatt of 7 Nov. 2018). As a founding partner of Quadriga Capital, Max W. Römer is also concerned to check potential business partners for compliance with ESG standards. A specially developed tool allows the review of selected indicators. The focus is on the question of which social or ecological consequences an investment can have.
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