It seems improbable that business leaders are still even debating about ESG - Environmental, Social and Governance standards. Yet that seems to be the case. The concern seems to stem from the idea that financial profit comes before everything else and that social and environmental considerations are of much lesser importance. Yet it is difficult to imagine a business being successful if these ESG factors are not taken seriously. Any company of any size relies on the opinions and attitudes of its customers and its staff. These factors are hugely influenced by the perception of a company's behaviour in the community on a whole raft of factors.
ESG is therefore of vital importance at top management and board level. Good governance is a question of leadership. Without that, little is achieved. The environmental impact of a company's activities in the wider sense is similarly a result of good leadership. Staff relations and customer relations similarly are dependent on having the right message understand at every level. That also means great management of communication. Getting it all right needs ESG.
ESG accountancy is now being demanded by authorities and governments. ESG is also visible in evaluating share values and dividends. Numerous consultant companies can advise on the best way of measuring the metrics of ESG.
In GDA we have the goal of encouraging even modest sized companies to embrace the concept of ESG. The subject is often difficult to quantify as each company often has different parameters to operate under. Nevertheless many investors are seeking out companies with higher awareness of ESG and so the award recognition in this field through the GDA Award system is an important signal to show. This applies to small companies and start-ups who want to get on the right way to begin with, as well as established companies. Check out the GDA ESG Action Award and see how a recognition like this can help your company to thrive.
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