Stewardship in Action: Corporate Responsibility and Policy Implications
Leadership
In this article, Urmilla Mahabirsingh explores what responsible business leadership looks like today. She explains why environmental, social, and governance (ESG) issues are still essential, even as some companies shy away from them. Drawing from Canadian regulations, climate disclosure frameworks, and Patagonia’s business model, she lays out how boards and senior executives can stay focused, transparent, and aligned with their values. For companies that want to build long-term trust and success, she argues, stepping back from ESG is not an option.
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Not long ago, ESG was a marker of progress. Companies embraced climate action, fairer workplaces, and better transparency. But that momentum has slowed. Today, some businesses are rebranding their ESG efforts or avoiding the term altogether. In a more polarized environment, ESG has become a target.
Even so, the issues at the heart of ESG, like climate change, inequality, and ethical governance, have not disappeared. As the TCFD explained in its 2017 report to Mark Carney (as Chairman) at the Financial Stability Board, climate-related risks are not future threats; they’re here now. The report urges businesses to take the lead in understanding these risks and planning for them (Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures, 2017).
For business leaders who care about long-term results, now isn’t the time to retreat. It’s the time to lead with clarity and purpose.
Corporate Purpose and Public Trust
No company operates in a vacuum. Businesses are part of broader social and environmental systems. When they fail to act responsibly, the damage can go far beyond their balance sheets. But when they get it right, the rewards are real. Take Patagonia, for example. In 2022, the company placed all voting shares into the Patagonia Purpose Trust and redirected profits toward protecting the environment. This was not just a statement for them; they took it as an opportunity to make their business structure match their values ("Patagonia's Next Chapter: Earth is Now Our Only Shareholder," 2022). As the researchers Gautier and Bothello pointed out when commenting on the Patagonia case, trust is strongest when it is built into how an organization operates, not just what it says (Gautier & Bothello, 2022).
The Boardroom’s Role: From Checkbox to Core Strategy
In Canada, securities regulators already require boards to disclose risks related to the environment and diversity, but simply meeting disclosure requirements isn’t enough. Directors need to treat ESG as part of the company’s core strategy. That includes setting up board-level committees with real mandates, tying executive pay to non-financial performance, and reporting on climate risk using accepted frameworks like the Task Force on Climate-related Financial Disclosures (TCFD).
At the same time, backlash to ESG is on the rise. According to a 2023 survey by The Conference Board, nearly half of large U.S. companies have already faced some form of ESG pushback, and most expect it to increase over the next two years ("ESG Backlash is Real and Growing. What to Know," 2023).
Governments make the rules, but companies have a big say in how those rules take shape. Supporting smart policy like carbon pricing, fair transition plans, or respectful partnerships with Indigenous communities, shows that a company is thinking long-term. Unfortunately, not all engagement is positive. Companies that lobby to weaken environmental or social protections put their credibility at risk. Shareholders and consumers are watching, and when actions do not match public commitments, trust erodes.
The response should not be silence. It should be strategy. Some companies are moving away from the term ‘ESG’ and using words like ‘sustainability’ or ‘responsible growth.’ Others are quietly scaling back communications. But total retreat can signal that the original commitment was never real.
Boards need to align advocacy with action. They should speak clearly about where the company stands and make sure their public positions reflect their internal goals. That kind of transparency builds credibility, even when the topic is controversial.
Conclusion: Recentering Purpose
The pushback against ESG is not just a political moment, it’s a leadership test. Companies that care about the future should not walk away from the issues that matter. They should meet them head-on. That means having a strategy that goes beyond compliance. It means being thoughtful about how you talk about values. And it means staying engaged with the people—employees, customers, shareholders—who expect businesses to lead with integrity.
Doing the right thing is rarely the easy choice. But in times like these, it’s the only one that builds the kind of trust companies need in order to succeed. It’s also the only path forward if we hope to create a better, more sustainable Earth—one where long-term thinking, shared responsibility, and collective well-being take precedence over short-term gain.
Bibliography
ESG Backlash is Real and Growing. What to Know. (2023). Retrieved from https://www.conference-board.org/publications/pdf/index.cfm?brandingURL=barrons-ESG-backlash-is-real-and-growing
Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures. (2017). Retrieved from https://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdf
Gautier, A., & Bothello, J. (2022). What Happens When a Company (Like Patagonia) Transfers Ownership to a Nonprofit? Harvard Business Review. Retrieved from https://hbr.org/2022/10/what-happens-when-a-company-like-patagonia-becomes-a-nonprofit
Patagonia's Next Chapter: Earth is Now Our Only Shareholder. (2022). Retrieved from https://www.patagoniaworks.com/press/2022/9/14/patagonias-next-chapter-earth-is-now-our-only-shareholder
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