Responsible capitalism Q&A with Edward Smith CFA, Head of Asset Allocation Research at Rathbones
In our responsible capitalism report, we discuss how Capitalism today is delivering returns for shareholders, but not in a sustainable way if the other stakeholders — employees, customers and the wider world — aren’t sharing in the benefits or, worse, if they’re paying a cost for delivering those returns. Using a parable of Prussian forests, our head of asset allocation research Edward Smith addresses this myopic focus on short-term measures of profit growth in a surprisingly relevant way. He sets out compelling reasons for every long-term investor to care about responsible capitalism — even if they don’t necessarily care about the societal benefits. In the short Q&A videos below, Edward elaborates on some of these points.