Who Informs the Decision-Makers?

 

Published: 23/03/2022

In a recent Executive Insights session, Carolyn Grant and Certified Chair™ Marc Allen three major motivations of business owners and their advisors when it comes to platforming and prioritising CSR discussions to achieve positive outcomes and navigate the competing priorities of all involved.

1. Social License to Operate

With the increased focus and scrutiny over the behaviours of our organisations, there is a demand for businesses to step in, adopt a growth and benefit mindset, and create long-term value for stakeholders. Since 58% of customers will buy and advocate for brands based on their beliefs and values, and 60% of employees will choose an employer whose values align with their own, it is no surprise that societal leadership is becoming a core function of businesses.

2. Corporate & Enterprise Requirements
Organisations such as Unilever and BHP, along with 380 other companies this year so far, have committed to aligning with the Paris Agreement and to achieving 100% decarbonisation across their entire value chain by 2050. The effects these commitments will have are yet to be seen, though will undoubtedly have far-reaching impacts on supply chains.

3. Access to Credit & Equity
It goes without saying that a core business strategy for any company is to still be operating in a few decades with considerable profit and shareholder return. As such, climate change and sustainability pose a very real threat to the future and the current way of working. Increasingly access to credit and equity is contingent on and supported by good CSR performance and climate-related financial disclosures (see the FSB Task Force on Climate-related Financial Disclosures framework).
 

TIPS & TRICKS

How can Chairs and businesses alike elevate conversations around CSR and ESG issues – stepping up from an annual charity donation to something that materially impacts business strategy? The key is to recognise that sound performance in CSR and reducing climate risk will maximise performance as a company. Marc and Carolyn recommended keeping the following in mind when approaching these conversations:

  • CSR starts with having a growth and benefit mindset
  • There needs to be strong accountability across the entire organisation
  • Companies must understand sustainability and climate-related risk exposure
  • Have a plan to minimise risk and maximise opportunity

 

WHERE DO ADVISORS & ADVISORY BOARDS FIT IN?

A principles-led and formally structured advisory board provides the ability for businesses to become future-fit. Engaging advisors that are experts in climate risk and opportunity at different periods of growth will help a business become a top CSR performer.

Do you need climate or future-focused experts as part of your advisory board? Engage the Advisor Concierge to create a path forward for your business.

 

Written by Bronte Lynch & Gemma Early