This recent Harvard Law post from Kirkland & Ellis: "Purpose, Culture and Long-Term Value—Not Just a Headline" succinctly captures why public companies can't afford to ignore the growing institutional investor calls for management and board focus on and integration and interrelationship of sustainability, corporate culture, and long-term strategy. Suggested action items for companies include proactive ESG engagement with long-term passive investors - which now individually and collectively can constitute a decisive proxy vote; articulation and engagement preparedness on ESG/corporate culture/strategy alignment; and fresh, substantive investor communications and disclosure on these topics.
See these recent reports: "BlackRock to CEOs: Purpose Drives Profit," "BlackRock Provides Instructive Insights on Engagement Activities & Approach," "State Street Prioritizes & Gives Guidance on Corporate Culture," "State Street Global Speaks!", and "Vanguard Continues to Step Up Engagement, Facts & Circumstances-Responsive Voting," and additional resources on our Institutional Investors and ESG pages.
This post first appeared in the weekly Society Alert!