Grayson D (2014) Board oversight of social, environmental and economic impacts.

1. Board oversight of
social, environmental
and economic impacts
Prof. David Grayson CBE
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For further information email: david.grayson@cranfield.ac.uk
www.doughtycentre.info
Corporate Responsibility: “the responsibility a company
has for its Social, Environmental And Economic Impacts.”
– European Union Commission October 2011
At a minimum, therefore, Corporate Responsibility is about risk
mitigation: reducing regulatory, financial, reputational risks from
negative Social, Environmental And Economic Impacts.
However, great businesses are not built just on risk-mitigation;
but also on opportunity optimization.
Corporate Sustainability is long-term value-creation for
business and society from reducing negative Social,
Environmental And Economic Impacts and increasing the
positive impacts. – Doughty Centre for Corporate Responsibility
modified from PWC / SAM Yearbook
Building on Cranfield on Corporate Sustainability – the first
book that a cross-section of faculty from one business school
have produced, about how sustainability effects their
management discipline – the Doughty Centre have examined
how each of the FTSE 100 largest listed companies organize
their board oversight and governance of Corporate
Responsibility. The research – published with the business-led
coalition Business in the Community – concludes that more
important than any particular board structure, is whether the
board has a mindset for sustainability defined as:
A collectively held view that long-term value-creation requires
the company to embrace the risks and opportunities of
sustainable development; and that the board are
simultaneously mentors and monitors, stewards and auditors of
the management in their commitment to corporate responsibility
and sustainability.
Follow-up, action-research with BITC will involve working with
FTSE board members on how they establish this board mindset
for sustainability.
Board Sustainability Mindset
Sustainability
Mindset
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Corporate Responsibility seen as both
Risk-mitigation and opportunity maximisation
Governance
Mentor & Monitor
Steward & Auditor