Hedge Fund Billionaire Says ESG Is Just Better Business; Needs More Focus on the “S”
In a recent interview with Andrew Ross Sorkin, Paul Tudor Jones II reports that from January 2018 to the end of September 2022, the top 10% of JUST ranked companies have outperformed the bottom 10% by 43% in the market. They also have lower beta (less risk), lower leverage, higher profitability, and higher dividend yields. He reports that the JUST 100 has beaten the Russell 1000 benchmark by 6.7% since inception; and that companies that lead in JUST Capital’s workers category have also outperformed the R1000 by just over 6% year to date.
Paul Tudor Jones II is a billionaire hedge fund owner and founder of JUST Capital, an outreach organization promoting the principles of Stakeholder Capitalism.
He points out that “ESG has not fully captured the importance of the “S,” and that across “Democrats and Republicans, rich and poor, young, and old, men and women – 85% of Americans agree that the most important metric for just corporate behavior is, ‘Do you pay your workers a fair, and living wage?’”
He asks: “I’m either chairman of the board, or I’m on the board, or I’m a stakeholder, [and] I’ve got two tombstones at the end of my life. One of them says, ‘I made an elephant’s bellyful of money for myself and my shareholders.’ The other one is, ‘I treated my employees, customers, my shareholders, my communities, and Mother Earth with respect.’ Which one do you want?”
Apparently, most employees do not believe that the owners of the companies they work for care too much about having stakeholders on their tombstones. A recent Gallup survey finds that only:
*31% strongly agree that their organization makes a positive impact on people and the planet.
*37% say are treated with respect.
*30% say someone is helping with their development at work.
*30% say their company cares about their well-being.
*11% say they were treated with respect all day yesterday.
And, in other Gallup surveys, only about 30% say they feel fully engaged at work.
Master the “S” of Environmental, Social, Governance (ESG), A.k.a. Stakeholder Capitalism
The Enterprise Engagement Alliance at TheEEA.org is the world’s first and only organization that focuses on outreach, certification and training, and advisory services to help organizations achieve their goals by fostering the proactive involvement of all stakeholders. This includes customers, employees, distribution and supply chain partners, and communities, or anyone connected to an organization’s success.
Training and Thought Leadership
- Founded in 2008, the Enterprise Engagement Alliance provides outreach, learning and certification in Enterprise Engagement, an implementation process for the “S” or Social of Stakeholder Capitalism and Human Capital Management and measurement of engagement across the organization.
- The Enterprise Engagement Alliance provides a training and certification program for business leaders, practitioners, and solution providers, as well as executive briefings and human capital gap analyses for senior leaders.
- The EEA produces an education program for CFOs for the CFO.University training program on Human Capital Management.
- Join the EEA to become a leader in the implementation of the “S” of ESG and Stakeholder Capitalism.
Engagement Digital Media and Marketplaces
- The ESM information portal and The Enterprise Engagement Advisors Network solution provider marketplace cover all aspects of stakeholder engagement, and the EEA information library lists dozens of resources.
- The RRN information portal and Brand Media Coalition marketplace address the use of brands for gifting, incentives, recognition, and promotions. The BMC information library provides information and research resources.
The EEA Human Capital Management and ROI of Engagement YouTube channel features a growing library of 30- to 60-minute panel discussions with leading experts in all areas of engagement and total rewards.
- Enterprise Engagement for CEOs: The Little Blue Book for People-Centric Capitalists. A quick guide for CEOs.
- Enterprise Engagement: The Roadmap 5th Edition implementation guide. A comprehensive textbook for practitioners, academics, and students.
Enterprise Engagement Advisory Services
The Engagement Agency helps:
- Organizations of all types develop strategic Stakeholder Capitalism and Enterprise Engagement processes and human capital management and reporting strategies; conduct human capital gap analyses; design and implement strategic human capital management and reporting plans that address DEI (Diversity, Equity, and Inclusion), and assist with managed outsourcing of engagement products and services.
- Human resources, sales and marketing solution providers profit from the emerging discipline of human capital management and ROI of engagement through training and marketing services.
- Investors make sense of human capital reporting by public companies.
- Buyers and sellers of companies in the engagement space or business owners or buyers who seek to account for human capital in their mergers and acquistions.
For more information: Contact Bruce Bolger at Bolger@TheICEE.org or call 914-591-7600, ext. 230.