Instant Karma Newsletter 8.4.20
  • In his new book, “Impact,” Sir Ronald Cohen writes about how to bring stakeholder capitalism into the mainstream. 

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As unprecedented as the coronavirus pandemic appears to be, Sir Ronald Cohen sees a clear parallel: the stock market crash of 1929, which resulted in financial sector reforms — including the establishment of the SEC — that seemed controversial at the time and are now widely accepted norms. The pandemic has amplified the push toward stakeholder capitalism, something that Sir Ronald believes could be similarly brought into the mainstream.

“In 1929, everyone had their own accounting standards, and investors invested in companies without understanding the profit they really made,” he said in an interview with Karma from his home in Tel Aviv. “Today, they invest in companies with ESG in mind and without any real idea of the impact they create.”

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In Other News: State Street, Morgan Simon, More Bikes

Asset managers are opposing a “misguided” proposed rule about ESG investments in pension funds. Have we seen the full impact of COVID-19 on consumer behavior? (Probably not.) An Indian gender equality platform will now sell products made by rural female artisans. Impact investors Morgan Simon and Tracy Gray examine venture capital as a tool for building wealth in marginalized communities. Urban planning in a pandemic means more space for bicycles. “Activist investor” does not necessarily bring to mind angry hedge fund investors but, well, here we are.  

Levity Break

The Muppets are returning to TV, which means this masterpiece needs a rewatch.