Today's WSJ article labels ESG as the latest dirty word in corporate America. Setting aside that ESG is an acronym (Environmental, Social, Governance), and not a word, it seems a bit hyperbolic to cast the entire movement aside as a victim of political extremism. ESG as a concept simply does not belong in George Carlin's original list of seven dirty words, which far preceded the ordinary profanity of our streaming world. The backlash against ESG - perhaps driven by political fringeism – does not justify or warrant disguising corporate mission alignment with more palatable descriptions ("corporate responsibility" or "responsible business"). Dirty acronym or not, the fundamental policies and purpose behind ESG remain the same: boards are responsible for supervising and setting the strategy for corporate leaders who must carry out the board-set business objectives.

Source: Wall Street Journal January 12, 2024 11:03 UTC