Business in the Community and Hogan Lovells launch new toolkit to support businesses in increasing stakeholder powers to include ESG targets
Business in the Community (BITC), the Prince’s Responsible Business Network, has today published a toolkit detailing how companies can increase the powers of their stakeholders to ensure that environmental, social and governance (ESG) targets are reported on, alongside financial performance. Research shows that brands that have a reputation for positive impact have value growth of 175% vs 70% for brands that have a low positive impact.1
The toolkit, produced alongside Hogan Lovells, helps businesses navigate through the noisy ESG landscape and ensures that they hold themselves to account to all stakeholders, including shareholders, customers, employees, the communities they operate in and the environment.
The toolkit shares the reasons why businesses should embed ESG stakeholder accountability into their corporate structure, and outlines four key recommendations to consider when thinking about implementing stakeholder accountability, including:
- Identify your stakeholders
- Listen and respond – the difference between engagement and accountability
- Measure and communicate the link between stakeholder capitalism and commercial success
- Become a leader in stakeholder governance before it becomes compulsory
Alastair Loasby, Responsible Business & Strategy Campaign Director at Business in the Community, said:
“Research shows that consumers are demanding more from the companies that they purchase from with three in five consumers admitting that they will boycott brands next year who are not taking action on climate change. Ensuring that stakeholders have the authority to hold businesses to account on their ESG targets, alongside their financial targets isn’t just the right thing to do, it makes business sense. The toolkit that BITC is launching today aims to support those companies who are taking their first steps on giving stakeholders additional powers to ensure that their ESG goals are being met.”
Scott Tindall, partner at Hogan Lovells, said: “Speaking to a range of corporates about the steps they have taken to embed stakeholder accountability into their business has been a heartening experience. It is clear that these issues are more topical than ever and that businesses are keen to progress the agenda around purpose and stakeholder governance. We heard that true stakeholder engagement cannot be a tick box exercise and has to be something meaningful that enables stakeholders to hold businesses to account.”
Notes to editors
- Kantar (2020), Purpose 2020 – the journey towards purpose-led growth, available at: https://www.kantar.com/Inspiration/Brands/The-Journey-Towards-Purpose-Led-Growth
- The report, Is legislation the best way to achieve stakeholder capitalism?, was developed in partnership with Hogan Lovells and the Better Business Act campaign. The toolkit and report are available online.
Business in the Community media contact: Aoife Butler-Nolan, Head of Media, Public Affairs and Policy, on 07702 903 216.
About Business in the Community
Business in the Community (BITC) and our network of business members are leading a movement to create a fair and sustainable world in which to live in work. Formed in 1982, and with His Majesty King Charles III as our Royal Founding Patron, we are the largest and longest-established membership organisation dedicated to responsible business. We work and campaign with more than 600 members to continually grow their responsible business practices, uniting our efforts for greater social and environmental impact in our communities.