New Economy Interview: Do we need to commit corporations more strongly to the common good?
In a new episode of our New Economy Interview series, we speak to Michael Peters about DAX companies' use of their profits solely in the interests of shareholders - and what could be done about it.
PUBLISHED22. DECEMBER 2021
READING TIME2 MIN.
The New Economy Interview Series is our latest format, in which we invite leading economists to share their views on the most important and topical issues facing business and the global economy in short interviews.
In the second episode, we spoke to MICHAEL PETERS (Finanzwende) about a recent study published by OXFAM Germany and Finanzwende Recherche on the lack of common good orientation of leading DAX-companies. The study reveals significant shortcomings among companies: Shareholder interests outweigh the common good and there is a lack of climate-friendly investments. In addition, corporate decisions exacerbate social inequality.
We talk to Michael about the study’s approach, why shareholder interests are favored over the common good, why this is critical, the impact of payout behavior on income and wealth inequality, and how a fundamental shift in corporate philosophy toward greater common good could be achieved.