Ernst & Young warns boards on CSR accountability
The consultancy and accountancy company Ernst & Young has warned corporate directors that companies will be called to account by shareholders over their corporate social responsibility (CSR) strategy. A study by the firm showed the number of sustainability-focused shareholder proposals ramping up along with environmental-related issues.
These issues have been brought into stark focus following the a series of company disasters such as BP's oil spill in the Gulf of Mexico which have made institutional investors realise that a well-founded CSR strategy can protect share-holders' value.
According to E&Y the number of CSR-related shareholder proposals which came to a vote rose from 150 in 2000 to 191 in 2010 with votes for such proposals nearly trebling over the same period. Social or environmental issues are expected to make up the largest portion of proposals this year.