Corporations may say they’re concerned about environmental and social issues, but in reality there may be more community service or just lip service done by some, according to a new study by Calvert Asset Management Company, Inc. and The Corporate Library.
The study, Board Oversight of Environmental and Social Issues: An Analysis of Current North American Practice, finds that, while 65 % of S&P 100 index firms and almost a fifth of Russell 1000 index firms have a corporate responsibility-related board committee, compared with only 4% of companies in the Russell 2000 index, “companies often appear to view environmental and social issues in philanthropic or marketing terms, rather than as fundamental business risks or competitive advantages.”
Annalisa Barrett, co-author of the survey and senior research associate for The Corporate Library, an independent corporate governance research firm, said in a statement, “Boards are increasingly taking on responsibility to oversee their companies’ risks and opportunities. However, the current study indicates that much remains to be done to encourage more frequent implementation of board-level responsibility for sustainability and to increase the sophistication of boards’ oversight where it already exists.”