Corporate social purpose is broader than traditional corporate social responsibility activities and encompasses how the core business delivers positive economic, social, and environmental impact in the world. This On the Board’s Agenda explores how social purpose strategies, programs, and investments can be important assets, and how boards might enhance their oversight of their companies’ social purpose roles and actions.
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The integration of digital and physical technologies is accelerating, enhancing companies’ ability to increase operational excellence and grow in ways that may not have been possible just a couple of years ago. This phenomenon, known as Industry 4.0, suggests a new revolution that enables smart, connected technologies to transform organizations, operations, and the workforce by increasing information flow, creating new insights, and revolutionizing business models.
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Recent corporate scandals linked to problematic company cultures have resulted in questions such as "where was the board?" and "shouldn’t the board have known?" In some cases, board members themselves may have wondered why they were not informed of cultural problems and asked, "should we have conducted more due diligence?" These and similar questions, and the responsibility to protect both their companies’ and their own reputations, are leading directors to look for ways to better monitor corporate culture and to understand potential cultural risks and address problems before they get out of control.
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Sustainability, which encompasses environmental, social, and governance (ESG) concerns, is increasingly positioned at the top of board agendas, and is now central to corporate competitiveness and a company’s continued ability to operate. Sustainability affects all sectors and challenges even the most progressive companies and the most thoughtful directors.
Deloitte sees sustainability securing more time at and in between board meetings, in part because there is no single, standardized approach to incorporating ESG into boardroom discussions on business strategy and risk. The stakes are high, and directors need to act now to recognize sustainability as a fundamental element of their stewardship and fiduciary role.
There are a number of steps boards can consider and questions they can ask to gain a better command of emerging sustainability risks and changing stakeholder expectations—to read more please download this edition of our On the board’s agenda series.
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Cyber risk is a top-level business risk that boards may find challenging to oversee and difficult to address. By using a maturity mode for board stewardship of cyber risk and understanding the actions available at each level of maturity, boards can accelerate their transition from awareness to meaningful oversight.
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