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Companies Aren't Greedy, They Are Designed to Maximize Profits
Companies are established to create maximum returns for shareholders through optimization and managing reputation risk. The perceived value of a company is closely tied to its stock value. Ultimately, the focus is on providing enough value to shareholders. Capitalism is designed around this principle. While there are efforts to introduce altruism and ESG factors in the market economy, it remains to be seen how sustainable these changes are. Various initiatives like ESG ETFs, animal welfare reporting requirements, and mutual funds directed towards ESG are emerging. However, the long-term impact of these changes is uncertain. The market is evolving with new financial mechanisms like climate-friendly bonds, indicating a growing focus on ESG factors. Organizations like ARE are making significant efforts to drive these conversations in boardrooms, but the lasting effects of these changes remain to be seen.