Chapter 5
Give Me a ‘G’! Decoding the Governance Component of ESG
IN THIS CHAPTER
Determining what “good” corporate governance entails
Appraising a company’s governance values
Focusing on how ‘G’ can dictate the ‘E’ and ‘S’ factors
Checking out the regional differences in governance activities
Corporate governance principally describes the systems a company uses to balance the competing demands of its diverse stakeholders, including shareholders, employees, customers, suppliers, financiers, and the community. Through this process, it provides the structure to deliver a company’s objectives by covering all aspects of organizational behavior, including planning, risk management, performance measurement, and corporate disclosure. In total, it safeguards appropriate oversight aimed at ensuring long-term, sustainable value creation with due regard for all stakeholders.
As such, corporate governance has always been an important topic in its own right, before it took on additional significance within the broader ESG universe. Therefore, among the ‘E,’ ‘G,’ and ‘S’ factors, it can be considered ...
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