On July 31, 2020, the EU Commission published a study on sustainable corporate governance and the duties of company management, which shows that listed companies in the EU continue to focus on short-term profit maximization instead of pursuing long-term interests.
According to the study, this is partly due to the existing legal framework or market practices. Seven problem areas are identified, such as:
These include, for example, a lack of sustainability strategies, remuneration policies or increasing pressure from investors, which results in short-term corporate decisions.
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