Emissionary zeal?

Robert Eccles, an Oxford University prof, this week takes issue with ExxonMobil and its efforts to challenge California’s new climate disclosure law: Senate Bill 253.

Eccles points out that Exxon’s claim that the reporting regime “violates” the first amendment’s right to free speech. Eccles is having none of that, however. He notes that Exxon has a preferred disclosure method. But that’s not enough to be convincing.

“Disclosure regimes cannot be suspected every time a company proposes a different methodology.” He adds: “If Exxon has a better approach, it can advocate for its adoption. It can also add context to the emissions disclosures required by SB 253.

“What it cannot do is claim the First Amendment bars California from requiring any approach at all until Exxon’s preferred standard wins.” Perhaps if anyone has any important business decision, they’d like get on the blower to Exxon Towers first, to see if it’s alright with them.

Baton rules

What is the right way for a CEO to hand over to a successor? That’s the question asked by a recent feature in the Financial Times.

The article is full of the usual succession expertise, but these words from Thomas Roulet of Cambridge Judge Business School stand out. Leaders, he says, are “often tempted to leave behind them a complex situation for the next one to pick up—basically hiding unresolved issues under the rug.”

Note to directors: never hold back from asking what could be causing that nasty bulge in the boardroom rug.

All eyes on AI

It’s quite the list: the climate crisis and biodiversity loss, human rights concerns and “seismic” socio-economic shifts mean business ethics are rising in importance, says the Institute of Business Ethics (IBE).

Well, they would say that, but Lauren Branston, chief executive of the IBE, kind of has a point.

But the big one is AI, according to Branston, who suggests we’re only beginning to grasp the full implications of the new technology for business leaders.

“Through our research earlier this year, a clear theme emerged: organisations are implementing AI but the regulation and ethical frameworks to govern it are struggling to keep up with the pace of change.

“Through our conversations with our supporters in our convenings and network this year, it became clear we need to focus on the implications of this on leadership, culture and decision-making through 2026.”

Makes sense. Just don’t ask ChatGPT.