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CSR and sustainability as fiduciary duties of corporate boards?

  • 1.  CSR and sustainability as fiduciary duties of corporate boards?

    Posted 04-13-2010 11:05
    With apologies for cross postings, you may be interested in an item from SocialFunds.com: Intel Agrees to Board-Level Consideration of Sustainability

    "The company engages with Harrington Investments following the submission of a shareowner resolution, and directs its legal counsel to issue an opinion that sustainability performance and reporting are the fiduciary duty of corporate Boards."

    The story suggests that

    "The implications of a legal opinion from corporate counsel agreeing that consideration of environmental, social, and governance (ESG) criteria, as well as sustainability reporting, represent a fiduciary duty for corporate Boards of Directors, could extend beyond the activities of Intel alone. As the Securities and Exchange Commission (SEC) ponders mandatory corporate reporting of ESG criteria, the legal opinion helps form a basis for the position that such reporting is a critical factor in corporate financial performance."

    The full story can be found at
    http://www.socialfunds.com/news/article.cgi/article2921.html

    Gordon

    Gordon Rands
    Professor and Interim Chair
    Department of Management
    Western Illinois University
    Macomb, IL 61455 USA

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