Over the last year, the discussion around how financial services, in particular investors, are responsible for the management of companies has grown. Activist investors, once seen as “corporate raiders” intending to radically change a company to increase stock value for short-term gains, are now viewed as possible stewards of increased diversity and better corporate governance. Mainstream investors have turned activist in areas such as weapons manufacture, climate change, excessive pay, diversity, and inappropriate behaviour by senior management.
Speaking to the OECD Global Parliamentary Network, hosted by the UK All Parliamentary Party Group (APPG) on Inclusive Growth at Parliament last month, Dr Hari Mann, Hult Business School and Visiting Fellow at Cass Business School, argued that the purpose of finance in society goes far beyond the role of investors and always has. Finance has a purpose, he said, and done well it has a huge impact and a significant role to play in society. He highlighted four defining areas where finance impacts inclusive growth.