Aligning Governance Interests for the Long Haul Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

As many as 93 percent of the executives surveyed say sustainability is critical to the future success of the company. At the same time, they recognize the "implementation gap in meeting their ambition embed sustainability deep and wide in their organizations." To fill this gap, there is another factor of primary importance: the model of corporate governance of the company. In this article, the author draws on several parts of the study of American firms in polluting industries to present ways in which companies can adapt their corporate governance model at three levels: the property, the board of directors and management. Improve social and environmental performance of their less affected by regulatory compliance, he says, than to align the interests of owners or managers of the company and the composition and diversity of its Board and its approach to executive compensation. First of all, long-term time horizon and continuous commitment needed to create a more sustainable future for generations to come. "Hide
by Pascual Berrone Source: IESE-Insight Magazine 8 pages. Publication Date: March 15, 2011. Prod. #: IIR046-PDF-ENG