Understanding the Pivot to ESG

  • ESG strategies serve as “proof points” for how companies operate in alignment with the values and behaviors they have set as standards for themselves.
  • Contemporary environmental issues (ex. global warming and environmental degradation) and social movements (ex. #MeToo and Black Lives Matter) have placed a greater emphasis on disclosing corporate ESG strategies.
  • With ESG stocks performing well in 2020 and 2021, ESG criteria has become an increasingly popular way for stakeholders to evaluate companies.
  • Transparency can turn a challenge into an opportunity for sustainability. With ESG reports publicly available, companies are prompted to evaluate and/or re-evaluate their procedures in managing current events.
  • “Uncomfortable” conversations encourage ESG mindfulness in the decision-making process and investment analysis at different levels of leadership. By actively addressing and discussing gaps in an organization’s ESG strategies, corporate leaders can set the tone to create a safe community for employees to talk about their experiences.
  • Companies should strive to measure themselves against the hardest standard because eventually it will become the normative standard internationally.
  • “Diversity without inclusion is a missed opportunity.” Acknowledging that the definition of diversity differs around the world, Shannon and Al reminded us not to export one certain view exclusively and that taking the opportunity to hear from employee grassroot voices is extremely important.
  • The growing issue of employee burnout appears to be a matter that needs to be promptly assessed through the revision of existing ESG functions or the creation of new ESG strategies.
  • Do research on the company’s broader mission. By investigating the company’s actions and worldview, one can not only better understand the impact it is trying to have on the world but also determine whether it is an organization you see yourself in.
  • Listen for the company’s values during interviews. Since job interviews are mutual exchanges of information, the company should also introduce itself with their values, and give you examples of what they do to support those values.

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McCombs Center for Global Business develops and supports internationalization and global business education. Visit us at www.mccombs.utexas.edu/CGB for more.

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CGB News & Insights

CGB News & Insights

McCombs Center for Global Business develops and supports internationalization and global business education. Visit us at www.mccombs.utexas.edu/CGB for more.

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