Enterprise Risk Management Magazine Review Environmental Social and Governance Risks
Environmental Social Governance Improvement Problems and Solution
If director bonuses are based purely on business growth it brings laser-like focus at the expense of environment, society and sustainability of business. Holistic business improvement comes with a commitment to all key risks of business. If bonuses are paid purely on growth then the marketplace has to be heavily regulated to force business leaders to act responsibly and create level playing field for fair competition.
Without linking director bonuses to environmental, social and governance ESG targets you cannot have true enterprise-wide risk management embedded in your business.