Sustainable and safe leadership

The "G" in ESGRC

Josef Scherer | Anna Klinger (2024): The "G" in ESGRC: Sustainable and safe leadership, in: FIRM Yearbook 2024, p. 151-154. Comment

The publication "The 'G' in ESGRC: Sustainable and safe leadership" discusses the concept of ESGRC, which stands for Environmental, Social, Governance, Risk, and Compliance, focusing particularly on the "Governance" aspect. It explores the lack of a legal definition for governance, highlighting the variety of interpretations and the regulatory guidelines on how governance should be practiced. The text emphasizes the importance of effective governance for ensuring sustainable corporate leadership and supervision, including handling crises and adapting to economic and environmental challenges.

Key points include:

  • Sustainable Leadership: The need for companies to navigate increasing crises and economic shifts sustainably.
  • Risk-Based Management: The unpredictability of business environments makes it challenging for decision-makers, necessitating advanced risk management strategies.
  • Stakeholder Orientation: Importance of assessing the company and stakeholders through SWOT and other analyses to guide decision-making.
  • Regulatory and Liability Risks: Increased legal obligations and liability risks for managers, especially in the context of governance and sustainability.
  • Digitalisation and AI: Highlighting the growing necessity for compliance in digitalization and the use of AI, alongside addressing the needs for sustainable development.
  • New Regulations: The introduction of new guidelines and codes, such as the OECD Guidelines for Sustainable Corporate Governance and other related standards, emphasizing the need for compliance and effective governance systems.

The text also discusses the implications of recent regulations for governance and sustainability, noting that these are not just bureaucratic but are essential for enhancing organizational resilience and long-term viability.


Josef Scherer | Anna Klinger (2024): The "G" in ESGRC: Sustainable and safe leadership, in: FIRM Yearbook 2024, p. 151-154.


[ Source of cover photo: Generated with AI ]
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