While there is a lot of focus today on companies’ role in addressing environmental and social issues, less attention is being paid to companies’ role in with respect to traditional economic challenges. Yet, through their business operations, almost all companies can have more direct impact on issues of economic opportunity and fairness than they can on the environment or on social legislation. And there’s an additional imperative: a recent survey by The Conference Board’s Marketing & Communications Center, along with the Harris Poll, on consumers’ views on sustainability, found that fair wages and work conditions are more important to buying decisions than any other issues, suggesting that these kinds of issues are cutting across the political divide.  In this podcast, Paul Washington, Executive Director of the ESG Center, speaks with Martin Whittaker, the founding CEO of JUST Capital – an independent nonprofit that provides research, rankings, indices, and data-driven tools to empower all market participants to help build a more just economy, thereby moving the vision of stakeholder capitalism from rhetoric to reality. They discuss what companies are doing – and can do – regarding economic opportunity and fairness. One of the key takeaways: companies have a real opportunity to tell their “economic opportunity and fairness story” on how they are creating value for all their stakeholders, not just their investors, and what they are doing to contribute to a fair and inclusive economy.  

ESG News and Views

Companies’ Impact on Economic Opportunity & Fairness – a conversation with Martin Whittaker

Prudential has been a pillar in the city of Newark for more than 140 years. Established in 1875, it provides financial wellness services to retail and institutional customers throughout the United States and over 40 countries worldwide. As an “anchor” organization in Newark, along with corporations such as Audible, United Airlines, Mars, PSEG, the company plays a vital role in working with community groups, nonprofits, and government officials in creating a more vibrant city – helping to make Newark a top destination for employers, workers, residents, and visitors alike. Prudential also provides an excellent blueprint for others in effectively engaging with community stakeholders. Not only does it tap into the needs of communities through its corporate citizenship and philanthropic programs, but in the creation of its products and services.  In this podcast, Jeff Hoffman, Institute Leader of Corporate Citizenship & Philanthropy at the ESG Center, speaks with Sarah Keh, Vice President of Inclusive Solutions at Prudential Financial and Vice President & Secretary of The Prudential Foundation, and Vishal Jain, Prudential’s Head of Financial Wellness Strategy and Development. They discuss how Prudential’s Corporate Citizenship team and Financial Wellness team partner in creating products and solutions that address the racial wealth gap, why working with local organizations – tapping them as thought-leaders and influencers – is key in getting individuals engaged with their suite of offerings, and the role of their Business Resource Groups (BRGs) in providing a sounding board to ensure their for-profit products meet the needs of different audiences. Related Resources: How Companies Can Make an Enduring Difference in American Cities Case Study: Newark, New Jersey: Community Voices Case Study: Baltimore, Maryland: Community Voices Case Study: Detroit, Michigan: Community Voices Case Study: Los Angeles, California: Community Voices Corning’s Approach to Social Issues: A Story of Innovation and Passion Corporate Citizenship in Action: Helping Small Businesses Survive and Thrive    

Infusing Community Needs into Products and Services: Lessons from Prudential

The SEC’s upcoming disclosure rules on human capital management (HCM) is – or should be – a top of mind issue in Corporate America. As companies prepare for those rules, it’s helpful to look at the first wave of human capital disclosures made in the months after SEC’s previous HCM disclosure rules took effect on November 9, 2020. In this podcast, Paul Washington, Executive Director of the ESG Center, sits down with Solange Charas, Founder and CEO of HCMoneyball and Distinguished Principal Research Fellow at The Conference Board Human Capital Center, and Ross Jeffries, Deputy General Counsel and Corporate Secretary at Bank of America, to discuss human capital disclosure trends, based on a review of human capital disclosures made by 344 public companies from November 9th, 2020 to March 1st, 2021; Bank of America’s HCM story, which may serve as a model for others; and how to prepare for disclosure requirements on the way. Related resources HC Disclosure Analysis Presentation Sustainability Reporting Is Hard—Will It Get Easier in the Future? Telling Your Sustainability Story Brave New World: Creating Long-Term Value through Human Capital Management and Disclosure How Boards Can Get Human Capital Management Right in Five (Not So) Easy Steps Insights for Investors and Companies in Addressing Today's Social Issues Bank of America’s 2020 Human Capital Management Report 

Human Capital Disclosure: Early Trends and a Case Study of Success

Innovation doesn’t only result in product and service inventions. It can also transform a company’s impact on society. For nearly 170 years, Corning Incorporated has been a leading innovator in advanced glass technology and materials science, leading to an unmatched track-record of life-changing inventions. From Edison’s light bulb, to optical fiber technologies, to the tough glass for smartphone displays, innovation is in Corning’s DNA. It has also applied the concept of innovation in its approach to social issues, most recently with the creation of the Office of Racial Equality and Social Unity (ORESU). In this podcast, Paul Washington, Executive Director of the ESG Center, speaks with Dr. Millicent Ruffin, Director of Community Affairs for the Office of Racial Equality and Social Unity, who leads the development and execution of programs that address the racial inequality and socioeconomic disparities in the communities around the world where Corning operates. They discuss Millicent’s background as a chemist and journey to her current role – which proves that the combination of skills and passion is a recipe for innovation; Corning’s long-standing commitment to diversity, equity & inclusion; how employee resource groups have contributed to the creation of the Office of Racial Equality and Social Unity; and the importance of letting company values, as well as listening to your employees and communities, lead the way in deciding whether, when, and how to engage in social issues. Related Resources: Choosing Wisely: How Companies Can Make Decisions and a Difference on Social Issues How Companies Can Make an Enduring Difference in American Cities Listen to Lead: How Community Expertise Can Improve Corporate Philanthropy Even Higher Expectations in a Post-2020 World: How Organizations Engage with Social Change Issues

Corning’s Approach to Social Issues: A Story of Innovation and Passion

ESG investing has been around for decades, but it has gained considerable momentum in recent years. In this podcast, Paul Washington, Executive Director of the ESG Center, speaks with Hari Balkrishna, Portfolio Manager for T. Rowe Price’s Global Impact Equity strategy, about the different ways investors are incorporating ESG factors into their investment strategies – from Socially Responsible Investing (which excludes certain categories of firms) to Impact Investing (which focuses on firms that have a positive environmental and social impact). They discuss what data investors need to make informed decisions, which go beyond the obvious reporting frameworks; the impact of the pandemic and the new Administration on sustainability; how investors spot signs of greenwashing; the main areas of ESG risk and opportunity in the next 5-10 years; and the most important piece of advice Hari would provide CEOs who are looking to integrate ESG into their processes and products. Related content: How Important is ESG to Capital Markets? Investor and Lender Perspectives (Webcast, The Conference Board, March 2021) International Evidence on the Mismatch between Firms' ESG Disclosure and ESG Performance (Publication, The Conference Board, February 2021) Impact Investing: Why It Matters Now More Than Ever (T. Rowe Price, March 2021)

Impact Investing and its Impact on You

Impact Investing: Why It Matters Now More Than Ever

Jeff Hoffman, Institute Leader of Corporate Citizenship & Philanthropy at the ESG Center, interviews Jenny Flores, Head of Small Business Growth Philanthropy at Wells Fargo, and Elizabeth Gore, Co-Founder and President of HelloAlice.com. In their conversation, they discuss how corporations can further support small businesses and entrepreneurs not only with funding but with their expertise, as well as the role of technology, partnerships, and innovation in supporting minority-owned businesses.

Corporate Citizenship in Action: Helping Small Businesses Survive and Thrive

John Wilcox, Chairman Emeritus at Morrow Sodali, is one of the most recognized and respected figures in corporate governance in the world.  In his book, The Evolution of Corporate Governance, he provides a real-time picture of how governance evolved over the years through a collection of essays and articles he has written during his distinguished career.   In this podcast, John and Paul Washington, Executive Director of The Conference Board ESG Center, discuss the past, present, and future of corporate governance, including John’s suggestions for companies in tackling some of the most pressing issues boards face today, such as creating an annual “Director’s Discussion & Analysis”; restricting corporate political spending; establishing a separate HCM board committee; recognizing the alignment between shareholders’ and stakeholders’ interests; and taking a holistic approach to corporate communication that goes beyond legal compliance.    Additional resources:   Brave New World: Creating Long-Term Value through Human Capital Management and Disclosure   Even Higher Expectations in a Post-2020 World: How Organizations Engage with Social Change   Even Higher Expectations in a Post-2020 World: How Organizations Engage with Social Change   Corporate Board Practices in the Russell 3000 and S&P 500: 2020 Edition   Board Effectiveness: A Survey of the C-suite  

The Future of Corporate Governance

BBob Zukis will change the way you view the world we live in: it’s one comprising a set of complex systems, from finance and health care, to communications and the environment. Sometimes the failure of a single component can bring down an entire system. And sometimes, as with the COVID-19 pandemic, it can cascade into the failure of multiple systems. Bob Zukis, co-author of “The Great Reboot: Succeeding in a World of Catastrophic Risk and Opportunity” offers eye-opening guidance for corporate leaders on how to move beyond traditional risk management approaches to identify and prepare for systemic risks. Bob shares insights from his book as well as from his experience as CEO and Founder of Digital Directors Network, Adjunct Professor of Management and Organization at the USC Marshall School of Business, and ESG Center Fellow.

A New Way at Looking at Risk: From the Pandemic to Cybersecurity and Beyond

ESG News and Views, from The Conference Board ESG Center, provides compelling in-depth interviews with ESG thought leaders, and timely updates on hot button topics in corporate governance, sustainability, citizenship and philanthropy.