Impacts on Business
More than ever, the behavior of corporate managers is in the spotlight. Customers, employees, and other stakeholders want to know that leadership is operating within an ethical and responsible framework. Over time, the effects of sustainable governance are especially evident in these areas.
Management Effectiveness
Companies that rank low on governance characteristics are more exposed to mismanagement, scandal, and tarnished reputations. They also are less likely to mitigate risks and capitalize on business opportunities over time.
Workforce Productivity
Diversity pays dividends. Companies that create inclusive workplaces are discovering higher employee commitment, increased productivity, and improved financial performance.
Investor Confidence
From transparent accounting to leadership accountability, high governance scores are a requirement for an increasing number of institutional investors.
The connection between responsible governance, value creation, and risk reduction is clear and increasingly important as cultural and political pressures magnify public scrutiny.
