Ch. 12 Articles Flashcards
What are the potential risks of ignoring environmental, social and governance factors?
- Business loses legitimacy
- Business losing its license to operate, to the point of being shut down
The Denier
Board members who see sustainability as nothing more than a buzzword and tend to use PR or corporate communications to “greenwash” their company’s activities
The Hardheaded
Board members whose attitude to sustainability is reduced to short-term strategic reasoning.
- How can costs be minimized?
- Are there market opportunities?
The Superficial
Board members who are well-meaning but have a shallow understanding of what sustainability means for their company
The Complacent
Board members who are early adopters of CSR initiatives who may have fallen behind, letting good practice get in the way of best practice.
The True Believers
Board members for whom the long-term economic viability of their organization is closely linked to and dependent on social and environmental responsibility.
5 Key Elements to Overcoming the Obstacles to Effective Board Action on Sustainability
1) Find the Right People
2) Define Sustainability fits with Corporate Purpose
3) Have the Right Data
4) Make sure the board has a suitable structure and authority
5) Recognize the complexity of sustainability
How to approach sustainability with denying board members?
Board members might approach sustainability indirectly through specific, concrete concepts such as cost reduction, business opportunity or risk exposure
How to approach sustainability with hardheaded board members?
Board members should start with areas where results are tangible
How to approach sustainability with complacent/superficial board members?
It can help to isolate the issues that are close to the mission of the organization
