Stakeholders Take Center Stage: Director Views and Priorities on Society

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ABOUT

Brazil

Australia

China

Poland

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1. Boards do believe stakeholder interests are important

89%

of directors believe that it is important or very important for their company to consider the interests of non-shareholder stakeholders

77%

of directors do not believe that shareholder interests are significantly more important than stakeholder interests

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Hover over to see results

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Directors

200

Survey Population

4. Directors Reject the Idea That Their Companies Are Short-Term Oriented

countries

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3. Pressure is Greater Outside the U.S.

STAKEHOLDERS

INSTITUTIONAL iNVESTORS

Only 56%

of directors believe that their largest institutional investors accurately understand the job the company does to meet stakeholder interests.

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About This Study

The Diligent Institute and the Rock Center for Corporate Governance at Stanford University surveyed nearly 200 directors of public and private corporations globally to better understand how they balance shareholder and stakeholder needs.

Employees

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Director Views on Priorities & Society

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60%

22%

80%

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STAKEHOLDERS TAKE CENTER STAGE

Recently, nearly 200 CEOs amended the Business Roundtable Statement on the "purpose of a corporation" and for the first time embraced a commitment to address the interests of all stakeholders—not just shareholders.

Setting the Stage

KEY FINDINGS

Even European companies, which have long practiced stakeholder-centric models of governance, have found that balancing interests between employees, communities, regulators and investors is a daily challenge in today’s landscape.

Who Are These Stakeholders?

Local Communities

Public At Large

Local Government

Other

Trade Unions

NGOs & Advocacy Groups

of directors are satisfied with the job their company does to meet the interests of these stakeholders. BUT many directors don't feel that their efforts are being understood...

2. There's a Communication Gap Between Boards and Their Stakeholders

HOWEVER...

92%

MEDIA

Only 18%

of directors believe that the media accurately understand the job the company does to meet stakeholder interests.

of directors believe that their most important stakeholders accurately understand the job the company does to meet stakeholder interests.

Only 57%

U.S. Domiciled

Outside U.S.

The percentage of directors who indicated that they received high or moderate pressure from investors and advocacy groups…

INVESTORS

ADVOCACY GROUPS

27%

51%

30%

57%

25%

33%

39%

Less than 1 year

1-2 years

3 years

3+ years

5. The Environment is Directors' Greatest Long-Term Worry

Percentage of directors that say...

The Environment 43%

Workforce Issues 14%

Economic Factors 18%

Taxes & Regulations 19%

…is the single most important environmental or societal issue that has the power to negatively impact company performance over the long-term.

Environmental issues include climate change, pollution, waste, or recycling

Workforce issues include availability, unionization,diversity, engagement or the regulations that influence, restrict or require these

Economic factors include national or macroeconomic factors, tariffs, trade wars, or personal spending

INVESTMENT HORIZON OF MANAGEMENT TEAM

KEY FINDINGS

WEBINAR

In this survey, we explore: How are directors navigating these stakeholder pressures in the boardroom? Are they being pulled in different directions? Where do board member loyalties and priorities lie?

WEBINAR

Intelligence in the Boardroom: How Directors Can Stay Abreast of the Stakeholder Landscape

November 25 | 10:00 EST

Join us for our upcoming webinar, where we’ll dig deeper into the results of the study and explore the implications for boards navigating a shifting stakeholder landscape.

Referring to social issues or political pressures that lead to increased regulation or taxes

DOWNLOAD FULL REPORT

Only 57% of

of directors believe that their most important stakeholders accurately understand the job the company does to meet stakeholder interests.

Only 56% of

of directors believe that their most important stakeholders accurately understand the job the company does to meet stakeholder interests.