A report suggests that companies should abandon ‘woke capitalism’ to avoid threatening the UK’s recovery from the pandemic.
According to The Adam Smith Institute, social problems are being ignored in an effort to make profit. This will have a major impact on the future generation of wealth and economic growth.
Terry Smith, City’s investment giant, lashed at Unilever’s sustainability practices for his obsessiveness.
Adam Smith Institute report says social problems are distracting from profit. (Stock image)
Mr Smith said Unilever – which makes Dove soap and Ben & Jerry’s ice cream – had ‘lost the plot’ for trying to define ‘the purpose’ of some of its brands like Hellmann’s mayonnaise.
According to the institute, “Companies must stick to tradition profit-driven shareholder capitalism over pursuing social objectives of ‘woke capitalist’ nature that frequently require political action. This can leave them facing allegations of hypocrisy.”
They also stated that “woke Capitalism” was blurring lines between Government and Business at a time where they needed to be much clearer.
According to the report, it is possible for the Government to fall into a ‘disaster corporation’ stance that requires it to intervene frequently in businesses – just as Covid did by providing loans and furloughs.
Alexander Stafford Rother Valley Conservative MP stated that “many lefties are using the pandemic for political gain and restricting the private sector.”
“But, this paper strongly argues that in order to have a recovery successful, it is essential for our free and open market system to thrive by government and business playing their respective roles.
Terry Smith, City Investment titan, lashed out at Unilever’s sustainability practices as a result of the think-tank’s statements. (Stock image)