Question 1(a) · 10 marks · 158 words written
Opening · a definition
The ESG system of corporate governance refers to fulfillment of multiple duties by the business, rather than narrow goal of profit maximization.
Body · points
Important to integrate ESG metrics
- Increasingly aware stakeholders
- Demand values of compassionate capitalism, not crony capitalism
- ensure diversity of interests Hiting from multiple brackets of society Eg- mahindra logistics grants benefits to same-sex couples
- Protecting triple bottom line
- Stakeholders approach, net shareholder Fulfillment of various demands eg - independent board of directors with 50% gender parity
- Government regulations
- SEBI's Business Sustainability Reporting system.
Benefits of such integration
→ increased goodwill of company → attract, motivate and retain talent → fulfillment of trusteeship model of Gandhi → easy to expand business → maintaining professional integrity
Challenges
→ greenwashing by companies → considered as additional cost → Friedman doctrine (business of business is to do business)
A business that exists only to earn money is a poor business
- Henry Ford.
Close · a quotation
None written.