Vicious cycle of guilt

The Economist argues that in making ‘ethical practices’ and ‘social responsibility’ prominent, corporates create a vicious cycle of guilt-until-proven-innocent. I agree with that part. But I wonder if the incentives in companies are aligned to benefit all stakeholders. Sure, in the long-run, everything is factored into the stock price. But the short (not even the medium) run is what managers need worry about, given the dynamic job market.

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