Posted on : October 5, 2018
Views : 2
Category : Sustainability
Professor Ioannis Ioannou (London Business School), discusses responsible business and purpose. How can organisations and stakeholders align? High Sustainability firms are characterized by:
  1. Distinct governance mechanisms which directly involve the board in sustainability issues and link executive compensation to sustainability objectives.
  2. A much higher level of and deeper stakeholder engagement, coupled with mechanisms for making it as effective as possible, including reporting.
  3. A longer-term time horizon in their external communications, which is matched by a larger proportion of a long-term investors.
  4. Greater attention to nonfinancial measures regarding employees; a greater emphasis on external environmental and social standards for selecting, monitoring and measuring the performance of their suppliers.
  5. A higher level of transparency in their disclosure of nonfinancial information.
  6. Superior accounting and stock market performance in the long-term.
Given changing societal expectations, increasingly more and more firms will integrate environmental and social issues into their strategy and business model.