What are a company’s responsibilities to society as a whole? What is our broader purpose? How do our personal values factor into setting priorities?
The answers to the questions above will differ from one company to another, but using corporate purpose as a guiding principle will assist in orienting an organization to what is important for multiple stakeholder groups – its employees, customers, regulators, the communities in which it operates, and ultimately its shareholders.
To meet these challenges, companies must prioritize integrating Environmental, Social, and Governance (ESG) considerations into the heart of their corporate strategy and performance initiatives. These focuses are essential to supporting an organization’s purpose and growth, creating intrinsic and economic value. By incorporating more considerate environmental behaviors, better health and safety protocols, broader diversity requirements, and governance around corruption and unethical labor practices, companies can increase their market relevance and appeal and contribute broadly to a more sustainable future for society.
However, with opportunity comes risk, and appropriately understanding how ESG risks can impact organizations provides a platform for value creation. Our report details the risks and opportunities associated with developing an ESG strategy, specifically in relation to initiatives in risk management, dispute resolution, investigations and compliance.
This piece was also published in Chambers Crisis & Risk Management 2021. AlixPartners was ranked as a leading firm in the category of Environmental, Social & Governance Risk (Agencies).
