Corporate Responsibility and Sustainability | Center for Corporate Governance

The issues associated with corporate responsibility and sustainability have become increasingly relevant to boardroom discussions. Also referred to as environment, social, and governance (ESG) issues or corporate social responsibility (CSR), these topics run the gamut from corporate reporting and response, to global climate change and business sustainability matters, to the handling of labor and community relations.

Corporate responsibility is about good citizenship and the recognition that companies have obligations beyond those to their shareholders. It has become critical to risk management and, thus, to business strategy. As such, it warrants board attention. More companies are recognizing that it is possible to integrate environmental and social rewards with financial ones.

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Deloitte Review

Finding the Value in Environmental, Social, and Governance Performance

Environmental, social and governance (ESG) issues can be material, presenting risks across a company’s entire value chain from supply chain labor disputes to large scale industrial accidents and product safety concerns. In this issue of Deloitte's Review, the evidence on investor behavior confirms that ESG issues can result in fundamental shifts in a company’s financial well-being, management and culture. A growing class of risks, they can be financially material and increasingly a concern in today’s growth-challenged and volatile environment, where even small shocks from the outside world can determine whether a company sinks or swims. This makes disclosure on how companies manage their ESG risks all the more critical, because it can help attract and retain investors and establish the long-term value of ESG management.

Publication date: 4/2013 | File size: 2.2 MB

Conflict Minerals

The 10-Minute Guide

The U.S Congress signed the Dodd Frank Wall Street Reform and Consumer Protection Act into law on July 21, 2010. Section 1502 of the Act seeks to deter - through increased transparency of companies' sourcing practices - the extreme violence and human rights violations in the Democratic Republic of Congo and neighboring countries, which are funded by the exploitation and trade of certain minerals. This Deloitte Point of View discusses how companies should evaluate their own internal capabilities to fully understand the course of action to take in terms of implementing this regulation.

Publication date: 4/2013 | File size: 1.6 MB

Institutional Shareholder Services Announces New Governance QuickScore Model

This article by Frederic W. Cook & Co., Inc. explains how QuickScore will replace ISS’s Governance Risk Indicators and aims to provide institutional investors with a quantitative assessment of governance risk in portfolio companies. QuickScore went into effect for covered U.S. companies in the first quarter of 2013.

Publication date: 2/2013 | File size: 84 KB

The Sustainable Board

Sustainability has become a top-of-mind issue for boards seeking to enhance performance and reputation, mitigate risks, and foster innovation and growth. This white paper from Deloitte Touche Tohmatsu Limited (DTTL)’s Global Center for Corporate Governance calls on boards to view corporate sustainability as more than just good corporate citizenship, but as an integral component of an organization’s business strategy.

Publication date: 1/2012 | File size: 407 KB

Deloitte Perspectives

Chris Park "For an organization to maximize a sustainability strategy, the program’s progress and performance must be measured and integrated into management’s priorities. By ingraining governance as a core element of its sustainability initiative, an organization can design and implement an enterprise-wide strategy that is more than the sum of its parts. This result will be a strategy that can drive long-term growth and position an organization for leadership in a dynamic and shifting world. Governance plays a critical role in the development and realization of strategies addressing emerging priorities in the areas of sustainability, climate change, energy and corporate responsibility."

Chris Park, principal, Deloitte Consulting LLP

Learn more about the Sustainability & Climate Change practice.