This archive report was first published on 17 September 2019.
On September 17, 2019, RUFUS MWANYASI posed a thought-provoking question in the Ideas & Debate section of Business Daily Africa: Is it possible for a company to have a strong social responsibility program while still charging extortionate interest rates and hidden fees?
He argued that the paradox of duality, where companies prioritize certain aspects of their business over others, makes it challenging to implement the ESG movement effectively. This phenomenon, which he termed the 'dance of the two-faced angels,' raises questions about the practicability of ESG assessment in corporate governance.
According to the Sustainable Stock Exchanges initiative (SSE) 2018 report, 58 stock exchanges, representing over 70 percent of global listed equity markets, have adopted the mission to promote sustainable development. However, implementation remains low and uneven, with only 12 exchanges incorporating ESG reporting into their listing rules.
The Nairobi Securities Exchange (NSE), for instance, does not require ESG reporting as part of its listing rules, offers no ESG training, and has no written guidance on ESG reporting. This makes it difficult to evaluate local listed entities through the ESG lens.
Despite these challenges, MWANYASI suggested that there is a solution, albeit an imperfect one. He emphasized the need for continued education on the importance of ESG core values and the role companies can play in advancing them.
