Beyond the Bottom Line: Should Business Put Purpose Before Profit?

In this article, the Financial Timestraces the growth of socially responsible investing from the creation of Phillips Van-Heusen’s pension fund in 1974 to overcoming the roadblocks caused by the “doctrine of shareholder primacy” to the practice’s more mainstream position today. Author Andrew Edgecliffe-Johnson emphasizes the importance of improving and spreading the practice of “purpose-first” investing as businesses are increasingly involved and positioned to address social and environmental issues which many governments are not prepared to address on their own. He highlights the potential for leaders of the business and finance industries to “lead on some of society’s most pressing issues” and encourages them to shape a model of capitalism that will allow them to do so successfully and responsibly.