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ARTICLE · 16 DECEMBER 2019

How Vulnerable Is Your Social Licence To Operate?

Dentons
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In the singular pursuit of profit, companies will strive, uncompromisingly, to reduce their cost base. It has been cheap to use raw materials and discard waste.

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In the singular pursuit of profit, companies will strive, uncompromisingly, to reduce their cost base. It has been cheap to use raw materials and discard waste. It is less of a burden on capex to emit pollution rather than capture and treat it. If companies are not stakeholders in society then it is easy for companies to avoid responsibility for social decay, and commitment to community schemes costs money. Capitalism has consumed people, raw materials and the environment around it, without being held to account.

Until now.

2019 is the reckoning day for consumption capitalism.

In 2019, civil society is demanding that companies make sustainable choices. Social media shouts this. Investors act on this. Perhaps, most tellingly, consumers decide what to buy based on this. "This" is ESG – Environmental, Social and Governance criteria – the yardstick for sustainable and responsible business; business that has a purpose, an environmental and social purpose, alongside

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Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com.

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