Strengthening the Case for Responsible Investing – Lessons From Covid-19
"COVID-19 puts a sharp focus on management approaches to human capital management, corporate culture, and the treatment of customers. Corporate responses around these issues can potentially have lasting impacts for all company stakeholders. For investors that are ESG literate, it’s no news that workforce management, employee satisfaction and corporate culture have a long- term impact on productivity, share price performance and returns. Similarly, that companies’ treatment of customers is an important driver of brand equity and improved customer relationships over time. How management teams respond in this time of crisis will be telling for their long-term profitability. Aside from management practices, the COVID-19 crisis also exposes the underlying business model, specifically what goods and services the company provide. As we are collectively finding out, essential services means something very specific. It redefines what we can and can’t do without, and what we are prepared to pay for. Business models that solve for food security, connectivity, online education, entertainment, sustainable mobility, finance, water, energy, sewage, waste, healthcare, etc have prospects for growth."
Read the full article by Old Mutual Investment Group in Daily Maverick