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Article

1 Feb 2009

Author:
Research & Policy Committee of Committee for Economic Development [USA]

[PDF] Rebuilding Corporate Leadership: How Directors Can Link Long-Term Performance with Public Goals

Directors...should widen the purview of their deliberations to give weight to societal issues... The board should insist that management report regularly...on...social performance... Directors should recognize the value of corporate communication with shareholders and the public...even when such communication may not be required by regulation... Directors should promote honesty in reporting...on the risks, opportunities and results of its social interactions... A key, if not critical, contribution of the business community to overcoming societal problems may lie...in...the willingness of business leaders to speak out on pressing public concerns, such as...the lack of universal health care, environmental damage from climate change, and the threat to human rights. It is not an either-or choice. U.S. business leaders should consider both how their business strategies interact with societal issues and how they personally can make a difference... [Case study on climate change compares BP and ExxonMobil, with response by ExxonMobil. Case study on human rights refers to Cisco, Google, Microsoft, Yahoo!. Case study on social impacts of private equity firms refers to TPG (Texas Pacific), Kohlberg Kravis Roberts (KKR), TXU, Carlyle Group, Manor Care. Refers to shareholder resolutions filed with Standard Pacific, General Electric, Medco Health, Reynolds American, Wal-Mart, IBM, Apple, Intel, Kimberly-Clark. Also refers to Goldman Sachs, DuPont, American Electric Power, HP (Hewlett-Packard), Gap, Nike, De Beers.]