Why businesses are increasingly being asked to consider social impact

3 minute read 20 Apr 2021
By Loree Gourley

Partner, Financial Services, Ernst & Young LLP

Partner in the UK Financial Services Climate Change and Sustainability Services team. Passionate about long-term value creation that helps deliver sustainable outcomes for communities and society.

3 minute read 20 Apr 2021

EY’s Loree Gourley and Simon Feeke discuss the rise of stakeholder capitalism as COVID-19 has called into focus the social impact on businesses.

As part of the UK Centre for Board Matters video series on emerging regulatory developments for corporate boards and non-executive directors (NEDs), Loree Gourley, EY’s UK Regulatory & Public Policy Director, and Simon Feeke, EY’s UK Culture, Diversity and Inclusion Director, share their insights on the rise of stakeholder capitalism and what boards should be considering in the year ahead.

Due to COVID-19, businesses are increasingly being asked to consider their social impact and the role they can play in responding to the economic and social aspects of the pandemic. As a result, there is a growing expectation for businesses to clearly report on how they consider and engage with their stakeholders such as customers, employees and suppliers, taking into account issues that matter most to them.

The video discussion focuses on areas EY considers essential for boards in the context of COVID-19:

  1. What role do institutional investors play in holding board members to account?
  2. What should board members and non-executive directors expect to see in the rise of stakeholder capitalism and accountability?

About UK Centre for Board Matters:

The EY UK Centre for Board Matters, a programme for Non-Executive Directors and all Board-level executives, delivers timely insights on the current issues facing UK businesses. Our programme combines on-demand content to keep Board leaders abreast of emerging themes, with networking events to build strong peer relationships.  

If you would like more information, or to join the EY UK Centre for Board Matters, please contact us at neds@uk.ey.com or visit https://www.ey.com/en_uk/board-matters

Summary

Understanding complex issues, such as the rise in stakeholder capitalism, and the likely impacts they have on businesses is key to anticipating and addressing potential areas of concern. Businesses that realign themselves to the stakeholder capitalism agenda and prioritise long-term value creation through environmental, social and governance frameworks will have an advantage.

About this article

By Loree Gourley

Partner, Financial Services, Ernst & Young LLP

Partner in the UK Financial Services Climate Change and Sustainability Services team. Passionate about long-term value creation that helps deliver sustainable outcomes for communities and society.