Centre for Corporate Governance & Citizenship partners with NUS Business School’s Centre for Governance & Sustainability to host virtual session on ‘Boards & ESG: Action your Aspiration & Enhance Accountability’ on 6th March
The panel discussion, moderated by IIMB’s Prof. P D Jose, included C K Venkataraman from Titan Company Ltd.; Prof. Lawrence Loh from NUS Business School, and Thomas Thomas from ASEAN CSR Network Ltd.
17 March, 2023, Bengaluru: The Centre for Corporate Governance and Citizenship (CCGC) at IIM Bangalore, along with the Centre for Governance and Sustainability (CGS), NUS Business School, National University of Singapore, hosted a virtual session on ‘Boards & ESG: Action your Aspiration & Enhance Accountability’, on 6th March 2023 (Monday).
The speakers at the panel discussion included C K Venkataraman, Managing Director, Titan Company Ltd.; Prof. Lawrence Loh, Director – CGS, NUS Business School, National University of Singapore, and Thomas Thomas, CEO, ASEAN CSR Network Ltd. The session was chaired and moderated by Prof. P D Jose of the Strategy area, IIM Bangalore.
Prof. P D Jose in his opening address said that ESG covers a wide range of subjects including climate change, human rights, employee diversity and ethical practices. “According to a PwC survey, nearly 94% of S&P 500 companies now publish annual sustainability reports. This figure is up from 20% in 2011. As we go forward, there will be increasing pressure on companies to address ESG issues and how corporate enterprises are responding to those demands. Boards are facing new challenges, particularly regarding how to integrate ESG into their decision-making process. Clearly, the impact of ESG on Boards is going to be long-lasting.”
During his talk, C K Venkataraman discussed Titan’s commitment to serve the interests of multiple stakeholders – be it its dealers, vendors or employees. “The companies started practicing it at a very early stage. During COVID, it became evident that the Titan focus was more on taking care of its stakeholders. As a result, the company’s market capitalization increased by 45% compared to what it was three years back.” He also spoke about the principle of what he called “The 4 Ps” – People / Process / Place / Planet – that the company follows, in order to provide good care and remain the most valuable company to its stakeholders.
Thomas Thomas was of the view that it was the Board’s responsibility to ensure business remains profitable, while reporting higher standards on environmental stewardship, social responsibility and good governance. “This in turn will result in long-term value creation. The Boards’ role is to provide the right leadership and support to management in adopting principles and values towards effectively serving its stakeholders. Companies should equally focus on the Sustainability and Governance elements and not just the Environmental aspect of ESG.”
Prof. Lawrence Loh highlighted some of the key findings of the studies carried out by NUS on ‘Sustainability Impact on Corporates’. “According to the study, 90% of the organizations look at sustainability from a short-term perspective and have not realized its positive impact on the organization’s long-term success. Second, one-third of the listed companies link sustainability to top management’s remuneration. Thirdly, there is lower commitment by corporate enterprises towards training and capability building of their executives/employees on sustainability practices. I hope the situation would improve in the future.”
During the discussion, the panelists answered questions related to the role of Boards in implementing ESG practices; the key to effective implementation of ESG policies and practices; how ESG supports corporate performance; the relevance of ESG for MSMEs and start-ups, and the future of ESG. One of the views expressed by the panelists on these issues was that the Board should have a majority of like-minded people to drive the ESG agenda and multi-stakeholder capitalism.
Second, organizations should not compromise on implementing the imperatives of ESG and should ensure complete commitment from all stakeholders. Since ESG implementation is a continuous process, organizations should embrace ESG culture and values across all its functions.
Thirdly, multi-stakeholder capitalism and ESG practices are relevant to any organization, irrespective of its size.
The panelists also wrapped up the discussion by observing that conversation on ESG is on the rise – consumers, shareholders, investors as well as the younger generation have started asking difficult questions on sustainability. Therefore, it is becoming increasingly important for the Boards and the management to look at effective implementation of ESG policies and practices for the companies’ sustainable growth and ensure commitment to their stakeholders and society in which they operate.
Prof. Jose summarised the various viewpoints coming from the panelists and concluded by saying that ESG is a complex and evolving issue.
Watch here: https://youtu.be/HrSYaJwaHIw
Centre for Corporate Governance & Citizenship partners with NUS Business School’s Centre for Governance & Sustainability to host virtual session on ‘Boards & ESG: Action your Aspiration & Enhance Accountability’ on 6th March
The panel discussion, moderated by IIMB’s Prof. P D Jose, included C K Venkataraman from Titan Company Ltd.; Prof. Lawrence Loh from NUS Business School, and Thomas Thomas from ASEAN CSR Network Ltd.
17 March, 2023, Bengaluru: The Centre for Corporate Governance and Citizenship (CCGC) at IIM Bangalore, along with the Centre for Governance and Sustainability (CGS), NUS Business School, National University of Singapore, hosted a virtual session on ‘Boards & ESG: Action your Aspiration & Enhance Accountability’, on 6th March 2023 (Monday).
The speakers at the panel discussion included C K Venkataraman, Managing Director, Titan Company Ltd.; Prof. Lawrence Loh, Director – CGS, NUS Business School, National University of Singapore, and Thomas Thomas, CEO, ASEAN CSR Network Ltd. The session was chaired and moderated by Prof. P D Jose of the Strategy area, IIM Bangalore.
Prof. P D Jose in his opening address said that ESG covers a wide range of subjects including climate change, human rights, employee diversity and ethical practices. “According to a PwC survey, nearly 94% of S&P 500 companies now publish annual sustainability reports. This figure is up from 20% in 2011. As we go forward, there will be increasing pressure on companies to address ESG issues and how corporate enterprises are responding to those demands. Boards are facing new challenges, particularly regarding how to integrate ESG into their decision-making process. Clearly, the impact of ESG on Boards is going to be long-lasting.”
During his talk, C K Venkataraman discussed Titan’s commitment to serve the interests of multiple stakeholders – be it its dealers, vendors or employees. “The companies started practicing it at a very early stage. During COVID, it became evident that the Titan focus was more on taking care of its stakeholders. As a result, the company’s market capitalization increased by 45% compared to what it was three years back.” He also spoke about the principle of what he called “The 4 Ps” – People / Process / Place / Planet – that the company follows, in order to provide good care and remain the most valuable company to its stakeholders.
Thomas Thomas was of the view that it was the Board’s responsibility to ensure business remains profitable, while reporting higher standards on environmental stewardship, social responsibility and good governance. “This in turn will result in long-term value creation. The Boards’ role is to provide the right leadership and support to management in adopting principles and values towards effectively serving its stakeholders. Companies should equally focus on the Sustainability and Governance elements and not just the Environmental aspect of ESG.”
Prof. Lawrence Loh highlighted some of the key findings of the studies carried out by NUS on ‘Sustainability Impact on Corporates’. “According to the study, 90% of the organizations look at sustainability from a short-term perspective and have not realized its positive impact on the organization’s long-term success. Second, one-third of the listed companies link sustainability to top management’s remuneration. Thirdly, there is lower commitment by corporate enterprises towards training and capability building of their executives/employees on sustainability practices. I hope the situation would improve in the future.”
During the discussion, the panelists answered questions related to the role of Boards in implementing ESG practices; the key to effective implementation of ESG policies and practices; how ESG supports corporate performance; the relevance of ESG for MSMEs and start-ups, and the future of ESG. One of the views expressed by the panelists on these issues was that the Board should have a majority of like-minded people to drive the ESG agenda and multi-stakeholder capitalism.
Second, organizations should not compromise on implementing the imperatives of ESG and should ensure complete commitment from all stakeholders. Since ESG implementation is a continuous process, organizations should embrace ESG culture and values across all its functions.
Thirdly, multi-stakeholder capitalism and ESG practices are relevant to any organization, irrespective of its size.
The panelists also wrapped up the discussion by observing that conversation on ESG is on the rise – consumers, shareholders, investors as well as the younger generation have started asking difficult questions on sustainability. Therefore, it is becoming increasingly important for the Boards and the management to look at effective implementation of ESG policies and practices for the companies’ sustainable growth and ensure commitment to their stakeholders and society in which they operate.
Prof. Jose summarised the various viewpoints coming from the panelists and concluded by saying that ESG is a complex and evolving issue.
Watch here: https://youtu.be/HrSYaJwaHIw