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E-book Sustainable Enterprise Value Creation : Implementing Stakeholder Capitalism through Full ESG Integration
Modern civilization is at a crossroads, at a potential inflection point in its historical evolution. The scientific community has advised that the window for decisive collective action to stabilize greenhouse gas emissions and avoid catastrophic impacts on people and the planet will close within a decade. The COVID-19 pandemic has created one of the worst health and socio-economic crises the world has experienced in a century. Inequality is on the rise, and shifts in technology, national politics and international relations are growing in frequency and disruptive force.No business is immune from these and other major changes. In this dynamic new operating context, no firm’s ability to create and sustain value can be taken for granted. There is simply no room for complacency or insular-ity in management teams and boards.To this end, business leaders in this new era must look more rigorously beyond their firm’s near-term operations and financial results, improving their understanding of how underlying economic, social, political, technological and environmental conditions are evolving and likely to affect their firm’s operations and prospects over time. And they must proactively translate this wider appreciation of the drivers of enterprise value into strategies and prac-tices that simultaneously benefit shareholders and other stakeholders, out of a recognition that such synergy is a source of further firm competitiveness and resilience.This book focuses on the practical actions that all boards of directors and business leaders can take to be better prepared to engage these risks and opportunities more diligently and effectively. It defines a systematic agenda to strengthen board and management processes so that they are better able to generate maximum synergy between business and societal value creation, illustrated by concrete examples of how leading companies are creating long- term enterprise value while contributing to a more just, inclusive and sustain-able future for their economies and societies. It outlines specific ways corporate leaders can step up, speak out and act on such issues as addressing climate change, contributing to economic recovery, respecting human rights, reduc-ing inequality, building new skills, responding to pandemics and systemic shocks and ensuring responsible data use and privacy as part of their core business strategy.The book focuses on four essential areas of business leadership required to create sustainable enterprise value through the rigorous implementation of the principles of stakeholder capitalism and full integration of environmental, social, governance and data stewardship (ESG&D) risks and opportunities. We add a “D” to the familiar “ESG” construct to take account of the rising data intensity of business value creation and its increasingly significant impli-cations for stakeholders and society, as these are not well addressed by current ESG theory or practice.
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