The business case for investing in diverse suppliers

Businesses all over the globe are being held to more than just financial success. Customers, investors, and employees are expecting them to make a more positive impact on the world and businesses have begun to respond by launching specific Environmental, Social, and Corporate Governance (ESG) programs and setting time-based goals.

ESG initiatives are so critical that many of the world’s leading brands are starting to tie CEO and executive compensation to how well they deliver on their promises and programs. From Starbucks saying it would give more shares to managers that grow diversity to McDonald’s incentivizing executives to increase women and racial minorities in leadership roles, and Boohoo linking bonuses to sustainability and governance goals to Apple adding an “ESG bonus modifier” to compensation packages. Delivering ESG impact is becoming non-negotiable.

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