Sustainable Sustainability: Why ESG is Not Enough | Book Review
Review of Rajeev Peshwaria's book - Sustainable Sustainability: Why ESG is Not Enough
Eighteenth-century
economist Adam Smith propagated profit maximization as the incentive for
businesses to create goods and services that society needs. He argued that
free-market competition would ensure consumers get the best quality product at
the cheapest price. Two hundered years later, Milton Friedman agreed in his
seminal 1970 New York Times op-ed that the sole responsibility of
business is to maximize profits ‘so long as it stays within the rules of the
game’. Incentives coupled with some regulations were to henceforth safeguard
societal interests. Instead, incentives created bad behaviour. Regulations were
routinely bypassed with intelligent loopholes. Despite this―to encourage
sustainability today―we are again using incentives and regulations. That’s
predominantly what the ESG framework focuses on. And what do we see? Rampant
greenwashing and box-ticking. To address today’s existential challenges, we
need innovation of the highest order. Innovation can neither be legislated nor
driven by extrinsic incentives alone.
Book #37
Nonfiction #21
This book
provides a practical guide, outlining step-by-step procedures that pave the way
for a successful commercial business that prioritizes both profit and purpose.
The author
provides the much-needed insight that goes beyond ESG[Environmental, Social,
Governance] to gain the advantage in the battle of living in a sustainable
world.
The book is
divided into 3 sections and gives the readers wisdom on the need for a higher
form of leadership and resilience and how these are important for
sustainability. The contents of the book are well structured and the short
passages with subheadings in each chapter/ section make the reading easier.
The language
is easy to follow and the best part is that the author has put forward the
facts and remedies without sounding too preachy.
As we read
on, we can understand the extent of research by the author and how he has
explained it in a simple language that can be an eye-opener for all.
The author
has provided real-life instances and data to substantiate the contents. The
reflection questions in each chapter are both eye-opening and thought-provoking
The
afterword and appendix add more value to the contents. There are plenty of
references in the notes section that can be used for further study.
Take time to read this book as it is not to be rushed through in a single sitting. It requires careful consideration to fully grasp its contents and gain the proper perspective. A 4/5 star read that is a must-have for managers, executives, and anyone seeking to make a positive impact and achieve meaningful growth.
Rajeev Peshawaria is the Chief Executive Officer (CEO) of
Stewardship Asia Centre (SAC) in Singapore and Founder President of the
Leadership Energy Consulting (LEC) Company in Seattle.
Author of the Wall Street Journal and Amazon bestseller Open
Source Leadership (McGraw Hill), Too Many Bosses, Too Few Leaders (Simon
& Schuster), co-author of Be the Change (McGraw Hill) and a
regular writer for Forbes, he constantly challenges conventional wisdom on
leadership, management, stewardship, sustainability and corporate governance.
Until the next post...
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