Abstract
This chapter focuses on practical actions that management teams are taking at the firm level to implement a more stakeholder-oriented approach that integrates ESG&D risks and opportunities into their core business strategy, business planning and operations across the entire value chain. The chapter starts by reviewing some of the ways that companies can create shared value, protect value and manage shared risks, and demonstrate purpose and shared values. It focuses on how executive teams are embedding purpose and material ESG&D factors into their company’s core business activities and functions and the importance of rigorous stakeholder consultation and materiality analysis and of credible communication and accountability with respect to these factors. The chapter also reviews good practices for strengthening the company’s understanding and management of material and salient ESG&D risks, including the integration or alignment of these with enterprise risk management frameworks. In addition to the importance of effective and holistic risk management, the chapter highlights some of the untapped opportunities for companies to invest in innovative new technologies, products, services, financing mechanisms and business models to profitably drive more inclusive and sustainable growth. It provides examples of how companies are promoting employee well-being, improving diversity and inclusion, investing in skills and future workforce development and enabling greater employee voice and participation. The chapter concludes with examples of advisory and accountability mechanisms that leading companies are establishing to strengthen their engagement with external stakeholders.