Class 11 Flashcards
(12 cards)
Impact accounting
ESGs are…
nonfinancial metrics
Phases ESGs
- 10 years ago they didnt exist
- Several organizations develop metrics (GRI/SASB…) and companies started to «cherry-picking» «where do I look good».
- The need for standardisation - benchmark and transparency for investors. The role of the World Economic Forum and, more recently, the International Financial Reporting Standards (IFRS)
- Impact accounting
Four pillars
Planet
Principles of Prosperity
People
Prosperity
One of the biggest barriers to process in the area of responsible business
To date, there has been no way for companies to account for their benefits and costs to society and the environment.
Notion of purpose
→ More than Vision (Where are we heading?),
→ more than Mission (What are we doing?),
→ it is about «Purpose» (Why do we exist?)
Components of purpose
- reason for existence
- decision making guide
- unifying factor
- sustainable competitive advantage
- ecosystem approach
Why is prupose important
- EMPLOYEES
=> talent brand
=> recruiting
=> employee retention - INVESTORS
=> financial performance
=> market valuation
=> shareholder value creation - COMPANIES
=> growth
=> relevance
=> talkability
=> penetration
=> reduces price elasticity - CONSUMERS
=> more belief-driven buyers
“Soft is the new hard”
→ Values, Vision, “Sense of Purpose”, Trust, Lead from the Heart: practices that, more than ever, will become the key “sustainable leadership skills”.
→ The “human being” at the centre of the action
Employability
→ There are no longer “Jobs for life” but … shouldn’t employability be a corporate social responsibility?
→ It means investing in Training and Values
Responsible leadership
- increased demand in society => result of increased awareness of climate and social emergencies => RL as response
- not just focus on financial results
- look for increasingly responsible and ethical solutions
5 main characteristics of a responsible leader
- ethics
- honesty
- authenticity
- being a source of inspiration
- humility
