Over the last five years, the corporate world has focused increasingly on implementing stakeholder capitalism through Environmental, Social and Governance principles (ESG). However, is ESG a distraction to cash-strapped talent and time constrained startups? Should founders build their business first and worry about ESG later?
Startups Need an ESG Strategy
It’s tempting to put it off until the business is more mature, but starting early will help you build a competitive advantage.
November 14, 2022
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Summary.
Startups are often just trying to survive — do they have time to worry about ESG? Yes. That’s because they must be aware of the material risks and opportunities in their given industry, which is essentially what a careful ESG strategy provides. Startups should start by identifying their purpose, then marry that purpose to ESG considerations — for instance, by identifying risks to avoid and manage. All startups should consider their carbon footprint, make sure they treat their employees well, and have diverse boards overseeing them.
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HBR Learning
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Business Case Development. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Make your next business case more compelling.