Research Finds Highest-Performing Organizations are Enhancing Their Commitment to ESG and Sustainability
New research by Korn Ferry (NYSE:KFY) points to key priorities of leaders of organizations on this year’s list of Fortune’s World’s Most Admired Companies (WMAC).
Every year, Korn Ferry conducts a deep examination of company approaches and practices. Recent studies have addressed digital readiness, organizational agility, and workforce transformation. Korn Ferry’s ESG-focused research for this year’s Fortune’s World’s Most Admired Companies included the following takeaways: steps organizations are taking and how they are adapting their people and governance processes, culture, and operating models to intensify their commitment to ESG (Environmental, Social, and Governance) and Sustainability.
The World’s Most Admired Companies rankings are the definitive benchmark on corporate reputation. Korn Ferry has collaborated with Fortune annually since 1997 to identify, select and rank the WMACs and uncover the business practices that make these companies both highly regarded and successful.
Most Admired Companies are defined as scoring in the top half of their industries on overall reputation, with peer companies scoring in the bottom half.
The research finds that:
- Among the 700 WMAC senior executives who responded to the survey, 39% describe their ESG strategies as mature, with well-developed approaches to defining opportunities, risks, and strategies. They also have strong organizational, people and governance capabilities to support their strategies.
- Even the WMACs, however, recognize that their ESG strategies are not static and that there is a great deal of work left to achieve target goals effectively and on time.
- The majority of WMAC executives feel their cultures (57%) and organizational structures (64%) will need to change in support of their ESG strategy and market expectations. Additionally, 72% indicate that they have revisited their operating models based on ESG strategies. This demonstrates action and accountability from the highest levels of the business, further evidenced by WMACs more closely connecting executive pay practices to ESG as compared to their Peers.
- Purpose and Value Creation came in as the top two ESG motivators for all companies, supporting the inextricable connection between an organization’s people and its competitive advantage.
“ESG and Sustainability efforts are no longer one-off initiatives, they are woven into all areas of organizations as leaders realize that a sole focus on profits alone will not allow them to succeed,” said Andrea Walsh, Senior Client Partner and ESG Solutions Leader. "The best leaders are focusing on a more integrated community of employees, partners, investors and those acting on behalf of significant and growing environmental and community needs.”
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We work with our clients to design optimal organization structures, roles, and responsibilities. We help them hire the right people and advise them on how to reward and motivate their workforce while developing professionals as they navigate and advance their careers.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220202005045/en/