Companies should embrace Europe’s roadmap to stakeholder capitalism
The EU Non-Financial Reporting Directive review is a watershed moment for global efforts to standardise ESG disclosures and improve business sustainability.
Image: Stokkete/Shutterstock
It is now de rigueur for for any company seeking to respond to the urgency of climate change and the imperative of responsible business conduct to pledge to "serve their stakeholders".
The European Union made a major contribution to advancing the concept of "stakeholder capitalism" by making the requirement for companies to be “stakeholder-oriented” one of the six key principles guiding rules for non-financial corporate reporting.
Stakeholders were even the central theme of this year’s World Economic Forum event in Davos, with a manifesto which stated: "the purpose of a company is to engage all its stakeholders in shared and susta
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