Boards Face Worker Safety Issues As Nation Reopens
As pressure mounts for companies to end business shutdowns and begin operating as close to normal as possible, directors need to be aware of their risk.
As pressure mounts for companies to end business shutdowns and begin operating as close to normal as possible, directors need to be aware of their risk.
Boards have known for some time that investors want to see ESG progress, but standards for communicating efforts have been lacking. That may be changing.
As a fiduciary, it will be hard for boards to argue that allowing a sitting CEO to serve on multiple outside boards during a crisis is in the best interest of investors and stakeholders.
As shareholder concerns about environmental risk grow during the pandemic, boards should expect increased scrutiny and should consider the following strategies for reassuring stakeholders.
It will be tempting to hide, delay, distort or leave out information during this crisis to avoid negative scrutiny of regulators and shareholders. Resist the urge and practice transparency.
It’s not clear yet how ISS will implement the guidance, so full disclosure on all decisions made will help boards avoid clashes.