This article summarizes a presentation at IBA’s Fall 2022 Forum on Accounting and Finance Analytics: Perspectives on ESG Reporting given by Harry M. Kraemer, a Clinical Professor of Management & Organizations at Northwestern’s Kellogg School of Management and a Executive Partner at Madison Dearborn.
As the world continues to evolve, businesses are realizing that they need to incorporate ESG considerations into their operations. This trend is causing boards of directors to adapt their strategies and consider the impact of ESG on their organizations. Harry Kraemer, a board member for nearly twenty organizations, shared his insights on ESG with students, faculty, and IBA members at a Forum on Accounting and Finance.
Kraemer emphasized that ESG is not a passing trend but is becoming increasingly important for companies to consider. He believes that ESG is shaping better business practices as companies become more aware of their environmental footprint, social impact, and governance obligations. Kraemer also pointed out that boards of directors are shifting their focus from shareholder value to stakeholder value, considering anyone who is impacted by the company’s resources, products, or actions.