Summary of an Hbr Article: Sustainability in the Boardroom

620 Words3 Pages
HBR: Sustainability in the boardroom Notes Nike: “pioneer in using social and environmental issues as catalysts for innovation” * Less attention paid to “the board’s role in these efforts or to Nike’s creation of a board-level corporate responsibility committee to institutionalize the company’s commitment to responsible performance.” Why so is not clear, especially because of increasing pressure on sustainability issues – focus on financial reporting led to negligence of other aspects of governance. Sustainability committee useful in at least five ways; 1. Source of knowledge and expertise * domain specific knowledge is important for all areas * Nike: Conway added to board because of her expertise; other directors were friends and family of Nike founders * because of her expertise, Conway was able to create the Global Alliance for Workers and Communities, access to communities would not have happened without her in view of the company’s reputation at the time * Conway implemented first board-level corporate responsibility committee * mapping out responsibilities and identifying key areas will help reveal areas of knowledge and experience useful for this 2. Sounding board and constructive critic * Committee can ask insightful questions and provide alternatives and perspectives, which enriches and challenges management’s thinking * 2009: Honduras workers laid off, Nike’s committee came up with compromise * Stating new goals and redefining old ones * Independent directors; at once insiders and outsiders constructive skeptics 3. Driver of accountability * Review progress towards sustainability along with other standards * Oversight activities * Expansion of corporate responsibility group’s work from achieving day-to-day operational compliance to building a

More about Summary of an Hbr Article: Sustainability in the Boardroom

Open Document