As a result, the stakes are high for boards, with shareholder dissent, lack of access to capital and reputational damage – at both company and individual board member level – the potential consequences of a failure to properly consider and to take action on environmental, social and governance (ESG) factors. However, the benefits are also great for a board who are ready to engage with their investors and stakeholders. By engaging with stakeholders and investors, this can help organisations succeed in the competition for capital and contribute to business reputation, retaining talent and generating long-term value. Yet how can board members better understand stakeholder and investor priorities?
According to Loree Gourley, EY’s UK Regulatory & Public Policy Director, all roads lead back to good, purposeful governance, with four key questions that investors are currently asking:
- How much of your board discussion is anchored around your corporate purpose?
- How often has your company changed a business decision based on your purpose?
- Has your board ever explored the negative consequences that your business might have on society?
- How do your employees really feel about your corporate purpose?
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 email@example.com or visit www.ey.com/uk/boardmatters.