The Quiet Relevance of Social Concerns, the S in ESG
It has often been argued that the ‘S’ in ESG has been overshadowed in the ESG acronym, having long played third-fiddle to corporate governance and environmental concerns. There are various reasons for this, one being that the social pillar has often proved more difficult to define, and indeed confine, than the other two letters, the concept often seemingly devolving into an ‘everything but the kitchen sink’ approach to navigating the friction between societal norms and the numerous business functions associated with running a company.
Indeed, employee rights, working practices, consumer relationships, other stakeholder relationships, a business’ wider relationship to society writ large and even moral questions are just a few aspects that can fall under the tent of the Social.
It is precisely this broad remit, and the various guises that social concerns can take, that makes the possible reputational risks that can span from such concerns complex for companies to address.
Read ISS | Institutional Shareholder Services’ full report authored by Tom Inchley, at: https://lnkd.in/eJMSsf4r
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