“Given the long-standing axiom that, with respect to investors, companies should under-promise and over-deliver, it is fairly stunning to consider how many companies are now over-promising in the ESG arena and ignoring the reputational risks associated with under-delivering. When stakeholders become disappointed and their anger is manifested in tangible financial and operational consequences – reduced revenue, reduced cash flow, reduced stock price relative to peers, increased cost of capital, difficulty attracting and retaining talent – they are finding support in courts of law.”Corporate Secretary
August 31, 2021
“CEOs who signed the pledge and are promoting their company’s ESG goals have set expectations very high, writes Nir Kossovsky.”
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A gap between stakeholder expectations and all future possibilities makes for reputation risk.
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