Why Effectively Communicating Governance Matters & How 3BL Delivers
July 6, 2023 /3BL/ - The Environmental, Social, and Governance (ESG) framework has, in recent years, gathered impressive traction as companies find their sustainability and ethical practices increasingly in the spotlight. Each aspect of ESG carries its own weight, so why is governance so important? Governance serves as the foundation on which environmental and social considerations are subsequently built upon. Given the crucial nature of a strong foundation it’s no wonder why governance is an essential part of effective ESG communications.
To successfully communicate governance, the first step is to truly understand what it means and its place in ESG. The structures, processes, and policies that determine how an organization is directed, managed, and controlled all fall within the governance division of ESG, encompassing the board of directors, executive leadership, and the mechanisms in place to ensure accountability, transparency, and ethical behavior. Within the ESG framework, governance evaluates the systems and practices that guide decision-making, risk management, and stakeholder engagement.
Despite governance being the backbone of ESG, it is too often omitted in favor of focusing on environmental and social issues. However, failing to communicate about it can result in an inaccurate and incomplete assessment of a company’s overall sustainability and ethical practices. Worse yet, this gap may erode trust and faith in your environmental and social goals with stakeholders. By bringing governance to the forefront and into the limelight, companies can:
- Provide a Comprehensive Picture: Highlighting governance practices ensures an inclusive understanding of a company's commitment to sustainable and ethical business practices, allowing stakeholders to assess not only the impact of a company's operations but also the integrity of its decision-making processes.
- Demonstrate Commitment to Transparency: Communicating about governance practices shows a company's willingness to be transparent and accountable, instilling confidence in stakeholders and strengthening a company's reputation as a responsible corporate citizen.
- Differentiate from Peers: Effectively communicating about governance means companies can differentiate themselves from their peers, whilst solid governance practices can serve as a competitive advantage, attracting investors, customers, and top talent who value responsible business practices.
- Engage Stakeholders: Engaging stakeholders on governance topics not only promotes inclusivity and fosters a sense of ownership but allows companies to align their governance practices with stakeholder expectations and build lasting relationships based on trust and shared values.
At 3BL, we recognize the importance of clear communication when it comes to governance practices, and have curated our network to ensure governance content is reaching the right audience. For example, Governance & Accountability Institute, Inc., one of 3BL’s affiliate partners, is a sustainability consulting and research firm that advises corporations and investors on how to execute winning strategies in order to maximize ROI at every step of their sustainability journey. Reaching G&A’s audience means that your governance content is in front of the corporate community and those in the investment and financial services sector, with a vested interest in corporate governance.
We also recognize that information about corporate governance is vital to demonstrating accountability to a wide array of stakeholder audiences including consumers and customers, investors and shareholders, NGOs, business partners and suppliers. Which is why your content will also be delivered through our extensive network which runs the gamut from UN Global Compact, National Diversity Council and The Consumer Goods Forum to Dow Jones Factiva, Yahoo!, Refinitiv, Moody’s NewsEdge, Market Watch and Bloomberg.
Click here to learn more about 3BL’s unrivaled distribution platform, or contact BLetts@3blmedia.com if you are interested in becoming a 3BL distribution partner.
3BL’s unrivaled distribution platform distributes sustainability and corporate responsibility content from hundreds of leading purpose-driven brands to a global audience of stakeholders including investors, media, policymakers, corporate leaders, consumers, employees, job seekers and ratings & rankings agencies. For more information, please visit www.3blmedia.com.