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Incorporating ESG and Stakeholder Interests into Board Business Decisions
February 08, 2023 | Report
Today’s corporate boards are charting unprecedented waters. A recent survey by The Conference Board found that 68 percent of companies believe ESG issues and 53 percent believe stakeholder capitalism will have a significant and durable impact on boards over the next five years.[1] Likewise, 90 percent of C-suite executives believe that a shift to stakeholder capitalism is underway, with 80 percent saying it is happening at their company.[2] At the same time, however, companies are facing growing anti-ESG sentiment from the investment community, leaders at the state level, and others who are either skeptical about whether ESG can actually drive companies’ financial performance or who are fiercely against companies’ playing a more prominent role in addressing environmental and social issues.[3]
Overview and Supplements
The insights in the overview of this report and its supplements are based on 1) findings from discussions with and polls of a 2022 working group of over 240 executives from 137 companies, 2) data provided by data analytics firm ESGAUGE, and 3) a survey of 80+ general counsel and corporate secretaries.
The publication is divided into five parts:
- The Roles of the Board in the Era of ESG and Stakeholder Capitalism (Overview and Key Insights)
- Incorporating ESG and Stakeholder Interests into Board Business Decisions (Supplement 1)
- Optimizing Board Composition, Structure, and Capabilities in the Era of ESG and Stakeholder Capitalism (Supplement 2)
- Enhancing Board Information and Stakeholder Engagement in the Era of ESG and Stakeholder Capitalism(Supplement 3)
- Improving Board Evaluations of Corporate, Management, and Its Own Performance in the Era of ESG and Stakeholder Capitalism (Supplement 4)
[1] The Roles of the Board in the Era of ESG and Stakeholder Capitalism Working Group Pre-Meeting Survey; over 80 general counsel and corporate secretaries participated in the survey.
[2] Charles Mitchell at al., Toward Stakeholder Capitalism, The Conference Board, December 2021. Some 212 C-suite executives participated in the survey.
[3] ESG Funds: Is Green the Color of Money? The Conference Board CEO Perspectives podcast, August 2022.
AUTHORS
Paul Washington
President and CEO
Society for Corporate Governance
Fellow
The Conference Board ESG Center
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Complimentary.
Incorporating ESG and Stakeholder Interests into Board Business Decisions
Enhancing Board Information and Stakeholder Engagement in the Era of ESG and Stakeholder Capitalism
