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New insights into trust and ethics among advisors and fund managers
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Corporate magic and the whimsy of the authorities
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One aspect of social inequality is income inequality, which can reach extreme levels and materially jeopardise societal and market stability. Investors in the South African economy will have direct experience of this. South Africa’s extreme wealth and income inequality should be a worry to all South Africans, particularly financial actors with an interest in the long-term stability of society.
Within the public market context, resolving for equitable reward across shareholders, executives and labourers is an issue that has had different remedies, some with more success than others. Take for example the well-intentioned efforts in the US, which, in 2003, required public disclosure on executive pay, premised on the idea that sunlight is the best disinfectant. Yet this has done nothing to curb growing wage gaps and, in fact, there is now a body of research that suggests that simple public disclosure has in part precipitated an upward spiral of executive salaries in the US.