ESG – Governance
Governance in the context of ESG is essentially about how a company is managed by those in the top floor executive offices. How well do executive management and the board of directors attend to the interests of the company’s various stakeholders – employees, shareholders, and customers? Does the company give back to the community where it is located?
Financial and accounting transparency and full and honest financial reporting are often considered key elements of good corporate governance. Also of importance are board members who are acting in a genuine fiduciary relationship with stockholders and being careful to avoid any conflicts of interest with that duty.