The "ESG culture wars" have dimmed the appeal of #ESG among many executives. In a recent Harvard Business Review article, Oxford professor and SASB founding chairman Robert Eccles argues that the acronym will eventually fade away. Instead, corporations should focus on defining their roles as responsible businesses. After two years of extensive research, Prof. Eccles proposes three strategies for companies: 🔹 Be Clear About Your Purpose: Focus on material ESG issues that directly impact shareholder value, understanding your company's capabilities and limitations in addressing societal and environmental challenges. 🔹 Be Candid in Sustainability Reporting: Use standardized frameworks to avoid greenwashing and greenhushing. Companies in Europe should comply with the #CSRD, #GRI disclosers should continue their practices, and all companies should adopt the #ISSB standards. 🔹 Be Constructive in Shareholder and Stakeholder Engagements: Proactively engage with shareholders, NGOs, policymakers, and industry associations to understand diverse perspectives, shape the sustainability narrative, and advocate for necessary regulations while acknowledging limitations. At Aligned Incentives, we partner with global industry leaders to develop high-return sustainability strategies by integrating granular impact assessments, financial analyses, and stakeholder engagement. Let’s work together towards a more responsible business future! 👉 Read the full article: https://lnkd.in/djbp4bgH #CorporateSustainability #ResponsibleBusiness
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In the dynamic #business world, micro-, small and medium-sized enterprises play a crucial role. For these companies, implementing #ESG (environmental, social and governance) 🌱 strategies not only enhances their reputation, but also increases their competitiveness and optimizes their operations. To celebrate #MSMEsDay 💼, we have an interesting article by Javier Pardo Torregrosa and Professor and alumnus Joan Fontrodona, in which they highlight three keys for these companies to successfully carry out an ESG strategy. Implementing these steps can help them generate value, improve transparency and comply with future regulations. 👉 Find out more: https://lnkd.in/dtZu9WDY
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Business Operations | Responsible Business, Social Entrepreneurship (LSE certified), SDG-driven Innovations
❔ What does it mean to be a responsible business? What is the role of a corporation in society? The great debate on the topic continues. It seems that we've made a lot of progress, but as it was relevant and contentious almost 54 years ago with well-known Friedman’s article in NYT, it remains to this day. Who is responsible for building a sustainable, better future (and present)? What is the role of the government, business, NGOs, financial institutions and civil society? Is it enough to follow mandatory ESG reporting? Or in today's reality: * Single materiality or double materiality in assessing ESG performance? * Sustainable Investment or Impact Investing? * Pro-ESG or anti-ESG? 👀🔎 Great summary of current situation on the global market in the article from Sep-Oct 2024 issue of Harvard Business Review Magazine. And 3 strategies from Robert Eccles for ensuring that a company is a responsible business: 1) Be clear about your purpose. 2) Be candid in your sustainability reporting. 3) Be constructive in your shareholder and stakeholder engagement. Something to reflect on and choose/confirm your position. However, there is one statement that I like the most (and which can be applied to any modern conflict, problem and confrontation) – 💡 ‘Ignoring them (your opponents), will not make them go away” 💎 Instead, be proactive in your engagement and constructive communication with them, your shareholders, industry associations, politicians, and NGOs. #ResponsibleBusiness #Sustainability #ESG #BeyondESG #PositiveImpact
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Great read on what it means to be a responsible business, and how to move past the (often polarised and partisan) ESG debate. In the end, there needs to be a recognition that "sustainability issues are vital for value creation". Businesses need to have "a clear understanding of what the company can and cannot do to address societal and environmental challenges while providing long-term returns for its shareholders" [...], and to engage in "constructive engagement and candid reporting".
Excellent piece by Robert G. Eccles for the Harvard Business Review. Robert concisely interrogates the controversial 'ESG' debate in business, demonstrating that while both sides may share differing views on the subject, at its core, the conflict comes down to one fundamental question: What does it mean to be a responsible business? The article provides three actionable strategies companies can use to navigate a clear path towards corporate responsibility: defining purpose with precision, embracing transparency in sustainability reporting to combat greenwashing, and engaging constructively with all stakeholders. A must-read for organisations seeking practical guidance on approaching sustainability in today's complex business landscape. To read more ESG and sustainability related insights, you can also visit our webpage here: https://lnkd.in/ejhcTRxD #ESG #sustainability #corporateresponsibility
Moving Beyond ESG
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Very insightful article on ESG. In response to the challenge posed, I wholeheartedly agree that businesses must approach environmental, social, and governance (ESG) issues with a methodical and nonpartisan mindset. It's essential to recognize that the impact of corporate decisions extends beyond profits; it touches the communities, employees, and ecosystems involved. Instead of framing ESG as a divisive issue, we should see it as an opportunity for collaboration. By focusing on shared goals—such as sustainability, social equity, and ethical governance—we can foster an environment where businesses thrive while simultaneously addressing the pressing needs of all stakeholders. Moreover, responsible companies that prioritize both shareholders and stakeholders pave the way for a new standard in corporate behavior. Embracing ESG principles can lead to innovative solutions that benefit everyone involved, rather than being mired in the culture wars. It's crucial that we, as a society, support this shift in focus. By encouraging open dialogue and collaboration between businesses, communities, and regulators, we can move past the polarization of ESG discussions, establishing a future where ethical practices are the norm, not the exception. This is not merely an aspiration but a necessary evolution in how we view the role of businesses in our world today.
Moving Beyond ESG
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Excellent piece by Robert G. Eccles for the Harvard Business Review. Robert concisely interrogates the controversial 'ESG' debate in business, demonstrating that while both sides may share differing views on the subject, at its core, the conflict comes down to one fundamental question: What does it mean to be a responsible business? The article provides three actionable strategies companies can use to navigate a clear path towards corporate responsibility: defining purpose with precision, embracing transparency in sustainability reporting to combat greenwashing, and engaging constructively with all stakeholders. A must-read for organisations seeking practical guidance on approaching sustainability in today's complex business landscape. To read more ESG and sustainability related insights, you can also visit our webpage here: https://lnkd.in/ejhcTRxD #ESG #sustainability #corporateresponsibility
Moving Beyond ESG
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Recent years have seen organisations around the word coming under increasing pressure to do business more sustainably. ESG (Environmental, Social, Governance) considerations are now a key part of many companies’ strategies and roadmaps. Our annual survey of corporate communication professionals finds 63% saying that ESG has “fundamentally changed the way our business operates”. But how can we translate this imperative for change into authentic, meaningful achievements? #webinar #marketresearch #esg
[ Webinar ] KEYS - ESG: Are we making progress?
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🌍 The Importance and Significance of ESG in Today's Business World 🌍 In an era where corporate responsibility is under the spotlight, ESG has emerged as a critical framework for sustainable and ethical business practices. 🔹 Environmental : Addressing climate change, reducing carbon footprints, and promoting sustainable resource use are no longer optional but essential for long-term viability. 🔹 Social : Companies are recognizing the value of fostering diversity, ensuring fair labor practices, and contributing positively to the communities they serve. A strong social focus attracts top talent and builds brand loyalty. 🔹 Governance : Transparent, ethical governance practices build trust with investors and stakeholders. Strong governance ensures accountability and aligns company actions with broader societal goals. Recent data indicates that firms with robust ESG practices not only enhance their reputation but also achieve superior financial performance. Investors are increasingly seeking out companies that demonstrate a commitment to ESG principles, viewing them as lower-risk and higher-reward. By integrating ESG into core strategies, businesses can drive sustainable growth, innovate responsibly, and contribute to a better world. The significance of ESG cannot be overstated—it's the pathway to a resilient, inclusive, and prosperous future. #ESG #SustainableBusiness #CorporateResponsibility #EthicalLeadership #Sustainability RMCS LLP
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Building Nexus between Policy & Tech in Governance of AI | Harvard social scientist, Kennedy School, IQSS, Davis & BKC | World Economic Forum | Thinkers50 | Professor, Hult Int'l Biz School | Adjunct, Georgetown & MBRSG
It's time to stir the pot and reevaluate the role of #ESG (Environmental, Social, and Governance) in today's business landscape. According to Robert Eccles from Saïd Business School, University of Oxford, the current ESG framework may not be the be-all and end-all we once thought it was. Here are the provocative points that are shaking the very foundations of corporate responsibility on his latest Harvard Business Review article ( Sept-Oct issue) Few important areas where the conversation on ESG may want to be transcended to a wider ideological spectrum. More in details.. 𝗧𝗵𝗲 𝗣𝘂𝗿𝗽𝗼𝘀𝗲 𝗣𝗶𝘁𝗳𝗮𝗹𝗹: Many companies are caught in the trap of vague mission statements. Eccles argues that businesses need to articulate a crystal-clear purpose to navigate the stormy waters of public expectation and ideological clashes. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗘𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁: Ignoring or dismissing critics is no longer an option. Companies must engage constructively, even with their fiercest opponents. Building a proactive narrative is crucial to managing external pressures. 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝘃𝘀. 𝗩𝗮𝗹𝘂𝗲 𝗖𝗿𝗲𝗮𝘁𝗶𝗼𝗻: There's a growing tension between creating shareholder value and addressing broader societal issues. Should companies be responsible for solving global challenges, or is this the realm of public policy? Eccles insists corporate leaders must differentiate between these realms to avoid conflating their ESG initiatives with their core business strategy. 𝗧𝗵𝗲 𝗚𝗿𝗲𝗮𝘁 𝗠𝗮𝘁𝗲𝗿𝗶𝗮𝗹𝗶𝘁𝘆 𝗗𝗲𝗯𝗮𝘁𝗲: Should companies focus only on financial materiality (single materiality) or also consider their broader impact on society (double materiality)? The debate is fierce, with no clear resolution in sight. Eccles highlights this as a fundamental issue that companies must address head-on. 𝗚𝗿𝗲𝗲𝗻𝘄𝗮𝘀𝗵𝗶𝗻𝗴 𝘃𝘀. 𝗚𝗿𝗲𝗲𝗻𝗵𝘂𝘀𝗵𝗶𝗻𝗴: With increasing accusations of overstating ESG efforts, some companies are now resorting to "greenhushing"—keeping silent about their initiatives. Eccles' call for transparency and candid reporting is a slap in the face to those who think they can escape scrutiny by staying quiet. Eccles' call for transparency and candid reporting is a slap in the face to those who think they can escape scrutiny by staying quiet... https://lnkd.in/dtptbQMU
Moving Beyond ESG
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𝐓𝐡𝐞 𝐓𝐫𝐮𝐭𝐡 𝐁𝐞𝐡𝐢𝐧𝐝 𝟓 𝐂𝐨𝐦𝐦𝐨𝐧 𝐄𝐒𝐆 𝐌𝐲𝐭𝐡𝐬 Myth 1: "ESG is just a trend." 👉𝐓𝐫𝐮𝐭𝐡:ESG is a long-term commitment for a better world. It's a genuine effort to foster sustainable practices, ethical conduct and to make enduring and positive changes. Myth 2: "ESG doesn't impact my daily life." 👉 𝐓𝐫𝐮𝐭𝐡: ESG is closer than you think! From fair labor practices to product safety, ESG affects the products you buy, the workplace you're in, and the communities you live in. Myth 3: "ESG reporting is too complex." 👉 𝐓𝐫𝐮𝐭𝐡: ESG reporting is evolving, not daunting! Numerous frameworks help companies navigate, making it easier to measure and communicate their impact responsibly. Myth 4: "ESG is just a checklist for investors." 👉𝐓𝐫𝐮𝐭𝐡: ESG is a compass for positive change! It's not just for investors; it guides companies towards ethical decision-making, fostering a culture of responsibility and resilience. Myth 5: "ESG is a sacrifice for profits." 👉 𝐓𝐫𝐮𝐭𝐡: ESG is an investment in a sustainable future! Companies that prioritize ESG often discover it's a catalyst for innovation, attracting conscious consumers and resilient partnerships. 🌐 Let's shatter these myths and embrace the truth – ESG is a force for GOOD! 🌐 #esgleadership #esginvestment #esgreporting #esgmyths #esgfacts #sustainablebusiness #ethicalbusiness #sanaterra
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The rise of #ESG (Environmental, Social, and Governance) metrics is reshaping executive incentive plans globally. A report from McKinsey & Company highlights how companies are increasingly incorporating ESG goals into their strategic objectives to drive sustainable growth. The report indicates that companies with robust ESG strategies are more #resilient and better positioned for long-term success. This is especially true in countries like France, Germany, and Spain, where ESG metrics are integral to executive performance evaluations. Incorporating ESG criteria helps organizations manage #risks, enhance their reputation, and meet the growing expectations of stakeholders. It also promotes a culture of #accountability and #transparency, essential for building trust and driving positive societal impact. 🔎 For a comprehensive understanding of how ESG is influencing corporate strategies, explore the report: https://lnkd.in/d5JizFBR #Sustainability #ESGstrategy
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