Why ESG Is a Flawed Corporate Movement
Alex Epstein argues that ESG (Environmental, Social, and Governance) is not a sound business framework but a moralized ideology that undermines profitability and accountability. It replaces clear profit goals with vague, politically driven standards that lack measurable outcomes.
- ESG replaces profit with undefined 'stakeholder' goals.
- It allows popular political views to dictate corporate behavior.
- Racial and gender quotas are treated as mandatory social norms.
- The framework lacks objective metrics for success.
“Stakeholder has no real definition. Whatever are the popular moral or political views at the time, that's what decides the stakeholders.”