Tipping point

Just a few days ago I posted on the LIM News http://limglobal.net/readings/arl_newsletter.htm the remarkable role that Goldman Sachs, leader in the investment market, was playing, by applying the Principles for Responsible Investment and issuing a new framework called ESG (Environment, Social and Governance). They presented it at the Leadership Summit in Geneva beginning July, and also the results of a survey that showed in hard figures how business that were abiding to the corporate responsible practices were also performing better - that one was not in detriment of the other. That was great news - but even better what I read this morning: that according to the latest news, GS was actually losing a notch compared to the main competitors in the area.

"Lehman Brothers, Morgan Stanley, Merrill Lynch, and Bear Stearns are simply improving their sustainability performance faster than Goldman, whose energy portfolio has both cleanest and dirtiest energy holdings (perhaps it has dirty holdings in order to clean them up, but who knows.) On the social side, Goldman has not washed its hands of subprime market holdings that verge on (and perhaps classify as) predatory", according to a report of research firm Innovest Strategic Value Advisors.

What this made me realize is that we are witnessing a race to the top - a virtuous cycle where the key players are competing with each other - who is the best. But for once - it's not who is the toughest, but who is the most ethical. I get this feeling that the world is entering a tipping point zone.