This podcast explores the clash between capital and ideals in Open AI, the conflict between profit and altruism in companies, the decline of the ESG movement, the challenges of changing immoral conduct in business, and the importance of incentives and accountability for success.
Read more
AI Summary
Highlights
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
Capital often overpowers altruistic missions, as seen in Open AI's transformation into a for-profit company.
ESG investing is more about branding than substantial change, with average returns and higher expense ratios.
Deep dives
The Collapse of Open AI's Altruistic Mission
Open AI, founded with the mission to invent transformative technology and give it away for free, saw its ideals crushed when it took a billion-dollar investment from Microsoft and transformed into a for-profit company. This highlights the clash between capital and ideals, with capital ultimately smothering even the most altruistic missions. It also serves as a lesson on the decline of ESG investing, which purports to prioritize environmental, social, and governance concerns but often falls short in practice.
The Holowness of ESG Investing
The ESG movement, which aims to invest in sustainable ways while delivering competitive returns, has proven to be more about branding than substantial change. Corporate ESG scores increase every year, indicating that either corporations are truly improving or the bar is getting lower. The returns on ESG investments are average and closely mirror those of non-ESG investments, while ESG ETFs charge higher expense ratios. Such a trend suggests that ESG is a masquerade, allowing companies to slap a green label on their offerings and charge more while accomplishing little in reality.
The Need for Robust Government Oversight
Rather than relying solely on corporations' self-regulation through ESG, there is a need for more robust government oversight and regulation. This includes antitrust actions and a rebalancing of power from the top 1% and corporations. Investing in democratic institutions focused on preventing common tragedies, such as climate change or forced labor, is crucial. Corporate responsibility should not be abdicated, but stakeholders should actively ensure that corporations treat employees well, invest in the community, and support the commonwealth, rather than solely pursuing profits at all costs.