This may be the most challenging—and interesting—time to serve on a US corporate board in the past few decades. Twenty years ago, boards were responding to the Sarbanes-Oxley Act, which followed the collapse of Enron and WorldCom, and a decade ago, they were focused on complying with a series of regulations stemming from the Dodd-Frank Act adopted after the 2008 financial crisis.
Today boards are responding to both a heightened focus on environmental, social & governance (ESG) issues[1] and a shift toward addressing the long-term welfare of multiple stakeholders.[2] This third wave of governance change is not primarily focused on compliance with new rules. Instead, it is characterized by addressing market forces—whether they be in capital markets, labor markets, or the market for goods and services.
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:
- Report: The Roles of the Board in the Era of ESG and Stakeholder Capitalism: Overview and Key Insights
- Supplement 1: Incorporating ESG and Stakeholder Interests into Board Business Decisions
- Supplement 2: Optimizing Board Composition, Structure, and Capabilities in the Era of ESG and Stakeholder Capitalism
- Supplement 3: Enhancing Board Information and Stakeholder Engagement in the Era of ESG and Stakeholder Capitalism
- Supplement 4: Improving Board Evaluations of Corporate, Management, and Its Own Performance in the Era of ESG and Stakeholder Capitalism
This may be the most challenging—and interesting—time to serve on a US corporate board in the past few decades. Twenty years ago, boards were responding to the Sarbanes-Oxley Act, which followed the collapse of Enron and WorldCom, and a decade ago, they were focused on complying with a series of regulations stemming from the Dodd-Frank Act adopted after the 2008 financial crisis.
Today boards are responding to both a heightened focus on environmental, social & governance (ESG) issues[1] and a shift toward addressing the long-term welfare of multiple stakeholders.[2] This third wave of governance change is not primarily focused on compliance with new rules. Instead, it is characterized by addressing market forces—whether they be in capital markets, labor markets, or the market for goods and services.
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:
- Report: The Roles of the Board in the Era of ESG and Stakeholder Capitalism: Overview and Key Insights
- Supplement 1: Incorporating ESG and Stakeholder Interests into Board Business Decisions
- Supplement 2: Optimizing Board Composition, Structure, and Capabilities in the Era of ESG and Stakeholder Capitalism
- Supplement 3: Enhancing Board Information and Stakeholder Engagement in the Era of ESG and Stakeholder Capitalism
- Supplement 4: Improving Board Evaluations of Corporate, Management, and Its Own Performance in the Era of ESG and Stakeholder Capitalism
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