The coronavirus pandemic has elevated strain on corporations to cease focusing solely on maximizing income and to as an alternative handle environmental and social points, based on the previous chairman of Goldman Sachs Asset Administration.In an interview with CNBC, economist Jim O’Neill mentioned the pandemic has highlighted inequalities within the workforce and created a possibility for governments and firms to handle broader social targets.”Those that run actually profitable companies need to be fascinated with one thing a bit extra than simply an outright obsession with maximization of revenue and taking part in their very own position in attempting to cope with some societal challenges,” he mentioned.O’Neill, who’s at the moment Chair of Chatham Home, mentioned corporations might be shifting into a brand new period of “stakeholder capitalism,” the place they need to act past the pursuits of their shareholders.”The entire position of share buybacks and the best way that corporations so dramatically are centered on managing their steadiness sheets, for instance, I believe that would turn into a bit a factor of the previous,” O’Neill mentioned.Traders have been more and more placing their cash into funds and firms that prioritize environmental, social and governance, also called ESG, points lately. Some say the pandemic is accelerating the sustainable investing development, with ESG funds receiving report inflows within the first quarter of the yr.Governments which have taken stakes in firms to maintain them afloat through the financial disaster now have a singular alternative to form these corporations’ operations, O’Neill mentioned. Airways, for instance, might be required to decide to lowering carbon emissions to be able to obtain authorities loans or investments, he added. “Within the spirit of by no means letting a disaster go to waste, it positively provides governments an opportunity to do this in the event that they need to,” he mentioned.O’Neill, who additionally served as industrial secretary to the UK. Treasury, mentioned politicians might discover “enormous political attraction” amongst youthful voters by requiring corporations to emphasise environmental points.”In some unspecified time in the future it is type of payback time for youthful individuals, and naturally, what’s it that youthful individuals appear to care about a lot in comparison with older individuals it is the setting and local weather change,” he mentioned.