Sustainability: Sorting the Substance From the Myth, Noise and Politics

This session was presented by the Practitioner Strategy Committee of Strategic Management Society. The SMS is a membership-based organization. All the activities within SMS target the development and delivery of engagement and networking opportunities for members of the Society. By joining the Strategic Management Society as a member, you not only help further this mission, but also receive exclusive membership benefits. To learn more about membership please visit: www.strategicmanagement.net/a...
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Today, there is a raging battle about ESG. Politicians on the right view it as a left-wing ideological agenda pushing companies to adopt liberal values, notably on climate change and DE&I (diversity, equity, and inclusion). Conversely, some, including Republicans, see ESG as addressing material risk factors vital to value creation, viewing it alongside other financial and contextual metrics in the investment process. Meanwhile, the left critiques ESG for focusing on shareholder value, not broad sustainability, advocating for more reporting on companies' societal impacts.
The extreme stances, often amplified by political theater, come from sincere beliefs and strategic posturing. The right's narrative is largely politician-driven, capturing public attention, while the left's discourse is often championed by NGOs, more visible to companies and investors than the general public.
We believe the polarities present an opportunity for collaboration, grounded in fiduciary duties and legal constraints. This demands bipartisan efforts, even if it means facing challenges from extreme viewpoints. Advocates of bipartisanship must be patient and strategic, striving to find common ground amidst the divisive narratives, aiming for collective societal benefits.