How do the corporate governance scandals relate to sustainability?
Corporate governance has always been an integral part of our assessment. Governance of corporations must be controlled or else abuses of power occur. Such abuses may involve corruption, insider trading, inequality in human rights and others. Should this type of behavior be allowed to become embedded in a company’s culture then this will undermine the capability of the company to create value over the long-term and hence threaten its sustainability. Post the technology boom, capitalism is becoming more civil and less arrogant, which will ultimately add to its sustainability.
