On February 20, we celebrate World Day of Social Justice, a date that, while it should be a reminder of progress, has become evidence of how much remains to be done. We find ourselves in a world where the gap between rich and poor continues to grow: the richest 10% of the world’s population owns 76% of the wealth, while the poorest 50% barely reaches 2% (according to the World Inequality Report 2024). How is it possible that in the midst of the 21st century we are still facing this level of inequality?
The figures are stark: the richest 1% of the planet accumulates almost twice as much wealth as the remaining 99%. In addition, according to the ILO, around 4 billion people lack access to social protection, and more than 700 million live in extreme poverty, surviving on less than $2.15 a day.
The paradox is that social justice has become a slogan rather than a guiding principle of the economy. Many companies and financial players have adopted the language of sustainability and inclusion, but few have actually changed their structure and business model so that the purpose goes beyond economic performance.
Companies today have the responsibility – and the opportunity – to balance their profitability with their social impact. However, what we see in many cases is what we could call greenwashing or social-washing: marketing strategies that paint companies as socially responsible when, in practice, they do not change their operating models.
For the business and financial world to be real drivers of social justice, it is necessary to move from discourse to deeds. Some of the keys to this are:
1. Redefining business success beyond profitability
Shareholder capitalism has dominated the economy for decades, prioritizing value maximization for short-term investors. But this logic has proven to be unsustainable. We need stakeholder capitalism, where companies measure their success not only by their revenues, but by their impact on society, the environment and the well-being of their employees.
A real example of this is Patagonia, which has redefined its business purpose by becoming a company owned by nature: 100% of its profits are reinvested in environmental projects. But isolated cases are not enough; this must be the norm, not the exception.
2. Reformulate financial incentives to prioritize social justice
Financial markets continue to reward profitability without considering social and environmental impacts. Why are sovereign debt bonds from countries with advanced social policies not more attractive? Why do impact investments represent only 2% of total capital under management worldwide?
It is essential to develop more advanced and demanding metrics so that investors do not only look at financial return, but also at social impact. Investment funds and banks must stop financing businesses that generate inequality or destroy the planet and start rewarding companies that really contribute to a fairer economy.
3. The role of the CEO: leadership with purpose, not empty talk
Business leaders must understand that their role is no longer just to maximize profits, but to balance profitability with impact. However, most CEOs are still tied to financial incentive structures that push them into short-term decisions.
A recent PwC survey revealed that only 22% of global CEOs have significantly modified their strategies to align with the SDGs (Sustainable Development Goals). It is time to change bonus systems and evaluate leaders not only on the shareholder value they generate, but on their social and environmental impact.
4. The consumer as an actor of change
While transformation must come from large financial and corporate structures, the consumer is also empowered. Today, 70% of millennial and Gen Z consumers prefer to buy brands with purpose. However, there is a disconnect between intention and action: only 20% are willing to pay more for sustainable products.
Companies must make social justice and sustainability accessible to all, not just those who can afford to pay a premium. It cannot be that ethics in consumption is a luxury.
We can no longer celebrate World Social Justice Day with empty speeches. It is time for companies, investment funds and consumers to take an active role in transforming the economic system.
For social justice to truly be the central purpose of companies, we must reformulate incentives, measure impact seriously and, above all, act consistently. It is not enough to say that we believe in a better world; it is time to build it with concrete actions, based on the economy of purpose.