Personal View: ESG Wars Will be Fought in the Courtroom, Not the BoardroomJuly 22, 2022 – Articles
In a recent issue, Crain's Cleveland Business published an Op-Ed by Dinsmore partner Richik Sarkar titled Personal View: ESG wars will be fought in the courtroom, not the boardroom. A summary is below.
Anyone who thinks that the environmental, social and governance (ESG) movement is just a human resources trend, environmentalist crusade or a do-gooders' investment plan is blind to ESG's potential long-term impact on multinational corporations amid the Business Roundtable's decision to shift the focus of corporate purpose from shareholder interests to stakeholder (employees, communities, customers, etc.) wellbeing.
Because ESG activism often takes the form of legal action, intelligent companies will work with counsel to leverage attorney-client privilege and develop ESG strategies and action plans. Truly effective leaders will shape plans to manage stakeholder expectations and mitigate risk. Those who do not will be the "woke" activists' next target.
You can read the full Op-Ed here.