‘Woke capitalism’ could derail our post-pandemic recovery by taking the focus away from making a profit, report warns
Companies should ditch ‘woke capitalism’ or risk derailing the UK’s post-pandemic recovery, a report argues.
Efforts to wade into social issues are taking the focus away from making profit, according to the Adam Smith Institute, which will be crucial to generating wealth and bolstering the economy in the coming years.
The think-tank’s statement comes as City investment titan Terry Smith lashed out at consumer goods giant Unilever for being ‘obsessed’ with its sustainability credentials.
Report by Adam Smith Institute said efforts to wade into social issues are taking the focus away from making profit. (Voorraadbeeld)
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.
The institute said: ‘Companies should stick to traditional profit-driven shareholder capitalism rather than pursuing ‘woke capitalist’ social objectives that often require political action and leave firms facing accusations of hypocrisy.’
The group added that woke Capitalism was blurring the lines between business and Government at a time when the boundaries needed to be clearer than ever.
It said the Government now risks falling into a habit of ‘disaster corporatism’ that sees it frequently intervene in business – as it did during Covid by providing furlough payments and company loans.
Rother Valley Conservative MP Alexander Stafford said: ‘Many on the left are exploiting the pandemic to make the case for a bigger state and restrictions on the private sector.
‘Egter, this paper argues powerfully that for a successful recovery, we must allow our liberal free market system to flourish by business and government playing their proper roles.’
The think-tank’s statement comes as City investment titan Terry Smith lashed out at consumer goods giant Unilever for being ‘obsessed’ with its sustainability credentials. (Voorraadbeeld)