Based on recent Environmental Social Governance (ESG) developments. The "S" in ESG is gaining more focus on how organizations are managing Human Capital. what are the benefits and challenges with this as it relates to organizations and stakeholders capitalism.
Answer -
The letter 'S' in ESG emphasis on the social components of an organisation which includes many duties towards company. The company's are expected to consider their social duty when complying with the duty of environment and governance.
Benefits :-
1) The capital of stakeholders are being protected by the strict provisions of law as company are bound to use it for legitimate and productive purpose.
2) It also compel company's to ensure safety and to take essential measures for the safety of employees.
3) The company's are prohibited to do any kind of prejudice with their employees and all employees should be welcome irrespective of their race, gender etc.
4) The 'S' ensures the quality products and services to the customer and clients without any cheating or fraud.
5) The company's always need to ensure the safety of society and preserve the human rights.
6) It ensures equal pay to the employees of the company without doing any discrimination.
Step by step
Solved in 2 steps
