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Article

11 Dec 2014

Author:
Margarita Pirovska, Cornerstone Capital Group

"Income Inequality: Tools to assess corporate performance and enhance investment decisions"

"Income inequality: Market Mechanism or Market Failure? Tools to assess corporate performance and enhance investment decisions, 13 November 2014

Inequality is not only a political economy or fiscal policy issue. It is also embedded in companies’ socialstrategies.The choices made in managing human capital, internally, and in creating positive social impact,externally, can lead to reducing inequalities. Increasing employees’ living standards (wages), social mobility (professional training) or simply their quality of life (benefits) can reinforce the company’s engagement towards corporate excellence.

In the last part of our report, we will discuss how investors can assess companies’ efforts to address income inequality, and individual strategies that have succeeded in reducing inequalities and also produced outstanding financial results...

[refers to initiatives by IBM, Starbucks, BMW, Costco, Trader Joe's]