Part 5/7:
While proponents of ESG argue that such initiatives are critical for long-term success, the implications for companies can be dire. Take Intel, for example. Despite receiving billions in government support, the company is reportedly cutting thousands of jobs. Critics argue that the focus on meeting ESG metrics detracts from essential business priorities, ultimately leading to poor innovation and underperformance compared to competitors.
Consider Intel's extensive investment in "workforce representation" and other ESG goals. While significant resources are allocated to bureaucratic initiatives and diversity efforts, the core product development appears neglected, resulting in plummeting stock value and market share.