Board oversight of social, environmental and economic impacts
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Grayson D (2014) Board oversight of social, environmental and economic impacts.
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Board oversight of social, environmental and economic impacts
- 1. Board oversight of social, environmental and economic impacts Prof. David Grayson CBE Facebook: www.facebook.com/DoughtyCentre Twitter: http://twitter.com/DoughtyCentre For further information email: david.grayson@cranfield.ac.uk www.doughtycentre.info Corporate Responsibility: “the responsibility a company has for its Social, Environmental And Economic Impacts.” – European Union Commission October 2011 At a minimum, therefore, Corporate Responsibility is about risk mitigation: reducing regulatory, financial, reputational risks from negative Social, Environmental And Economic Impacts. However, great businesses are not built just on risk-mitigation; but also on opportunity optimization. Corporate Sustainability is long-term value-creation for business and society from reducing negative Social, Environmental And Economic Impacts and increasing the positive impacts. – Doughty Centre for Corporate Responsibility modified from PWC / SAM Yearbook Building on Cranfield on Corporate Sustainability – the first book that a cross-section of faculty from one business school have produced, about how sustainability effects their management discipline – the Doughty Centre have examined how each of the FTSE 100 largest listed companies organize their board oversight and governance of Corporate Responsibility. The research – published with the business-led coalition Business in the Community – concludes that more important than any particular board structure, is whether the board has a mindset for sustainability defined as: A collectively held view that long-term value-creation requires the company to embrace the risks and opportunities of sustainable development; and that the board are simultaneously mentors and monitors, stewards and auditors of the management in their commitment to corporate responsibility and sustainability. Follow-up, action-research with BITC will involve working with FTSE board members on how they establish this board mindset for sustainability. Board Sustainability Mindset Sustainability Mindset ! " ! " Corporate Responsibility seen as both Risk-mitigation and opportunity maximisation Governance Mentor & Monitor Steward & Auditor