Accepted Thoughts

Benjamin Franklin, one of the Founding Fathers of the United States, once said, “Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety.” This quote has resonated throughout history, often being cited to emphasize the importance of individual freedom and personal safety. However, a closer examination of its context reveals a deeper message about self-governance and the limits imposed by a narrow perspective. In the realm of modern-day corporatism, particularly concerning Environmental, Social, and Governance (ESG) scoring, Franklin’s quote takes on new relevance.

Understanding Franklin’s Quote

To grasp the true meaning of Franklin’s quote, we must explore its historical context. Franklin wrote these words during a tax dispute between the Pennsylvania General Assembly and the proprietary family of the Pennsylvania colony, the Penns, who ruled from a distance. The colonies were embroiled in the French and Indian War, and the Assembly was accused of delaying funds for frontier defense due to their insistence on taxing the Penn family lands. The Penns were willing to pay their fair share towards the war effort but not as a tax. In fact, they wanted the Pennsylvania legislature to openly agree that they had no authority to tax the Penn lands at all.

In this scenario, Franklin was not solely discussing individual liberty versus personal safety but rather highlighting the importance of self-governance and the dilemma faced by the Pennsylvania legislature. The legislature had to decide whether to compromise their core beliefs by stating they had no authority to tax the Penn lands in order to receive funds from the Penns for the war effort. It exemplified the tension between the desire for self-preservation and the principles that defined their governance.

Applying Franklin’s Quote to Modern Corporatism and ESG Scoring

Today, we witness a parallel in the constraints placed on modern companies that wish to do business within the framework of ESG scoring. ESG scoring evaluates companies based on their environmental, social, and governance practices. While the intentions behind ESG scoring are noble, it is crucial to examine how it affects individual liberty and diversity of thought.

Insisting that businesses align themselves with a particular type of thought, as dictated by ESG criteria, can limit diversity and hinder individual liberty. When companies are compelled to conform to a predefined set of standards, there is a risk of stifling innovation, creativity, and the pursuit of alternative solutions to complex problems – not to mention philosophical differences, moral sensibilities, or religious prohibitions. It is essential to strike a balance between encouraging responsible business practices and preserving the freedom for companies to express their unique inspirations, perspectives, and approaches.

Moreover, ESG scoring can impose burdensome compliance requirements that may disproportionately impact smaller businesses and hinder their growth. While larger corporations may have the resources to meet these standards, smaller companies might find it challenging to allocate sufficient time, funds, and expertise to comply with all the intricate guidelines. This can create barriers to entry, limiting competition and ingenuity – ultimately hindering economic growth.

Preserving Self-Governance and Freedom of Choice

Franklin’s quote serves as a reminder that self-governance and individual liberty are crucial aspects of a thriving society. It is essential to foster an environment where businesses and individuals can exercise their freedom to operate while also encouraging responsible practices.

Rather than mandating strict adherence to a specific set of criteria, a more comprehensive approach could involve promoting transparency and allowing the market to decide whether or not a company’s value system is worthy of patronage.

Balance in the Modern World

Understanding Franklin’s quote in the historical context is essential to ensuring we remain astride the great experiment. We can appreciate its true essence as a commentary on the importance of self-governance and the challenges faced when compromising core beliefs.

While ESG scoring aims to promote responsible business practices, it is crucial to strike a balance between encouraging compliance and preserving individual liberty and diversity of thought. By fostering an environment that respects self-governance, we can encourage companies to embrace responsible practices voluntarily and work towards a more sustainable and inclusive future.