In an age where companies are increasingly held responsible for their environmental and social impact, General Counsel (GC) must play an integral role in shaping corporate purpose and ensuring effective oversight.
Companies today are increasingly accountable for their environmental and social impact with scrutiny coming from a range of stakeholders including investors, consumers, governments, and supply chain partners. In response, many CEOs have made public commitments toward enhancing long-term collective stakeholder value. While the meaning of “stakeholder value” is not always clear, two things are apparent: First, in times of rapid social change, the law is a necessary but insufficient guide to corporate behavior, and second, increased activism across stakeholder classes has significantly changed the relative influence of stakeholder groups in corporate decision making. Companies must integrate stakeholder feedback (from investors, employees, consumers, etc.) into board processes, corporate strategy, and company metrics.