Chapter 5

Give Me a ‘G’! Decoding the Governance Component of ESG

IN THIS CHAPTER

Bullet Determining what “good” corporate governance entails

Bullet Appraising a company’s governance values

Bullet Focusing on how ‘G’ can dictate the ‘E’ and ‘S’ factors

Bullet 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 ...

Get ESG Investing For Dummies now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.