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.
Organizations we partner with
Bata Shoe Museum, Canadian Council for the Arts, CEE Centre for Young Black Professionals, City of Toronto, David Suzuki Foundation, Fasken, Genome Canada, George Brown College, GTAA, Humber, IMCO, Kids Help Phone, Luminato, McMaster University, MLSE, OICR, Ontario Presents, ROM, Sankofa Square, Sick Kids, TD Bank, TTC, UHN Foundation, United Way Greater Toronto, University of Toronto, University of Waterloo, University Pension Plan Ontario, York University
Clients Served Include
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
Partner
Add a comment
This will be publicly visible.
Your email address will not be published.
Your comment will be reviewed by an admin before it is published.
Talent Acquisition / Jason Murray
Tips for Landing the Candidate: What Every Employer Must Know Once the Decision’s Made
In this article, Jason Murray explores the pivotal final phase of executive and senior leadership recruitment: converting your chosen candidate into a confirmed hire. He outlines nine high-impact practices that go beyond negotiation tactics and into the realm of leadership stewardship—ensuring the offer stage reflects the values, clarity, and credibility of your organization. Designed for hiring teams, executives, and search partners, this article serves as a timely reminder that the way you close sets the tone for everything that follows.
Future of Work / Chad Lawrence
The Rise of the Four-Day Workweek: Assessing the potential of a four-day work week and its impact on productivity, job satisfaction, and overall organizational culture
The four-day workweek is gaining traction globally as organizations seek innovative ways to improve productivity, enhance job satisfaction, and foster inclusive workplace cultures. By prioritizing quality over quantity, this model has shown promising results, such as increased productivity and improved work-life balance, as evidenced by successful pilots at companies like Microsoft Japan and Perpetual Guardian. Beyond productivity, the four-day workweek supports equity, diversity, inclusion, and accessibility (EDIA) by addressing diverse employee needs, such as caregiving responsibilities and work-related stress, while signaling a progressive shift in organizational culture. However, its implementation requires careful planning to avoid overburdening employees or creating disparities between roles. When managed effectively and evaluated through measurable metrics and an EDIA lens, the four-day workweek has the potential to redefine workplace norms, positioning organizations as forward-thinking, people-centered, and adaptive to modern workforce expectations.
Leadership / Melissa Sumnauth
Diversity of Thought: A Framework for Compassionate and Effective Leadership
In fast-paced, high-stakes environments, the greatest time-wasters are often not technical failures but interpersonal breakdowns: misunderstandings and conflict. In this article, Melissa Sumnauth explores how Edward de Bono’s ‘Six Thinking Hats’ framework offers leaders a practical, compassionate tool to bridge different thinking styles within teams. Through deeper understanding of facts, emotions, benefits, creativity, planning, and judgment, leaders can create more innovative, empathetic, and high-performing organizations.
Sustainability / Stephanie La
Green AI: The Role of AI in Sustainability
Green AI emphasizes the importance of balancing innovation with environmental responsibility, addressing the significant environmental and ethical challenges posed by AI development, such as high carbon emissions, energy consumption, and data privacy concerns. While AI offers transformative benefits, including climate change prediction, pollution monitoring, and public health insights, its rapid advancement often prioritizes speed over sustainability. By adopting Green AI practices—such as energy-efficient algorithms, renewable energy sources, and sustainable development goals—organizations can reduce their environmental impact, align with sustainability objectives, and foster long-term growth while contributing to a more sustainable and equitable future.
Sustainability/Stephanie La
Green AI: The Role of AI in Sustainability
Green AI emphasizes the importance of balancing innovation with environmental responsibility, addressing the significant environmental and ethical challenges posed by AI development, such as high carbon emissions, energy consumption, and data privacy concerns. While AI offers transformative benefits, including climate change prediction, pollution monitoring, and public health insights, its rapid advancement often prioritizes speed over sustainability. By adopting Green AI practices—such as energy-efficient algorithms, renewable energy sources, and sustainable development goals—organizations can reduce their environmental impact, align with sustainability objectives, and foster long-term growth while contributing to a more sustainable and equitable future.
Leadership/Melissa Sumnauth
The Importance of Pronouncing a Name: An Act of Inclusive Leadership
Names are not just labels; they are powerful reflections of identity, culture, and history. In this article, Melissa Sumnauth explores the significance of correct name pronunciation in leadership and organizational culture. Drawing on her experience in executive coaching, executive search, facilitation, and people & culture she illustrates how mispronunciation can function as a microaggression and a barrier to inclusion, while intentional effort to say names correctly fosters dignity, belonging, and trust. With practical tools and a call to action for leaders, this article reframes name pronunciation as a vital practice in advancing equity and respectful engagement.