Our Blog: The Podium

By Maureen Wolff, Chief Executive Officer

With a record $20 billion+ flowing into ESG oriented funds in 2019 in the US alone there is no denying that a compelling Environmental, Social and Governance (ESG) platform has become a critical component of investor relations programs and overall communications for corporations of all sizes. Investors, proxy advisory firms and debt rating agencies are demanding it. And, other stakeholders including employees, customers, strategic M&A suitors and suppliers are increasingly considering ESG practices in deciding where to work and with whom to conduct business. 

ESG can fundamentally make an organization stronger, more resilient and more attractive to key stakeholders, while helping to mitigate long-term risks.  At the same time, the lack of an ESG strategy and sustainability narrative can leave a company exposed and at risk on several fronts.

ESG data is being used on every public company today, whether the companies have released ESG information or not. As BlackRock CEO Larry Fink stated in his 2019 Letter to CEOs, “In the absence of robust disclosures, investors, including BlackRock, will increasingly conclude that companies are not adequately managing risk.” Additionally, BlackRock along with State Street and other institutions have committed to vote against directors at companies that do not demonstrate a commitment to ESG.

The events of recent months -- including the global COVID-19 pandemic and the racial justice movement -- have further amplified the need for greater corporate focus on a range of ESG initiatives, including risk oversight, supply chain security, IT infrastructure, employee safety, talent management and diversity and inclusion.  

While doing nothing on the ESG front is clearly no longer a viable option, implementing an ESG program can seem overwhelming -- particularly if publishing a full-scale sustainability report that meets GRI or other standards would not be feasible for your company right now.

The good news is that ESG is a journey, not a sprint. By taking a few strategic first steps to put a stake in the ground, you can establish a strong ESG foundation to build upon over time and earn tremendous credit from investors, employees, customers and the society at large.  

We’ve guided many companies through this “walk before you run” approach.  Here is where we suggest you start:

By Maureen Wolff, Chief Executive Officer

5 Actions to Take to Earn Investor Trust and Confidence Through an Unprecedented Time 

The world as we all know it has changed -- drastically and quickly. The COVID-19 pandemic has moved fast, stocks have fallen sharply, and investor focus has quickly shifted from offense to defense. 

During times of instability like these, companies can earn a tremendous amount of equity and trust with their shareholders through open, transparent and proactive communications. While the decision on how to communicate through uncertain times is specific to each company’s situation, increased disclosure and transparency are usually the answer.

By Maureen Wolff, Chief Executive Officer

The fast-moving COVID-19 outbreak is presenting many unique challenges for companies around the globe as they determine how to best manage the business impact, protect their employees at large, and communicate an immense amount of information and change effectively with their employees, shareholders, customers, the media and more.

The following are 8 tips for business practices and communications with core stakeholders as you formulate policies in the wake of COVID-19. 

After many months of data breach disclosures and sexual harassment scandals, of frustration about perceived pay inequality and insular boardrooms, the largest financial institutions in the world have finally had enough. Larry Fink, CEO of BlackRock, fired the first warning shot this year, when in January he issued his annual letter to CEOs, titled “A Sense of Purpose.” In the letter, Fink asked public companies not only to deliver increasing returns but to demonstrate how they make a “positive contribution to society.” And in March, the Council of Institutional Investors (CII), which represents 130 pension funds managing more than $3.5 trillion in assets, called for corporate boards to adopt stricter guidelines for executives violating sexual harassment codes.

What makes Sharon Merrill Associates excel in the world of strategic communications?  Trust. Experience. Resilience. Passion. Vision. Perspective. Partnerships. Take a look at our story and see how we leverage these qualities to help you build value.  

The Equifax data breach, which affected some 143 million people, is just the latest high-profile incident reported by a large corporation. Verizon announced that 14 million customer accounts were exposed; Bell Canada said the data of 19 million customers was hacked; education platform Edmodo said the data of millions of its 78 million users were sold on the dark web. And Yahoo’s 2013 data breach reached epic proportions this month, when it announced all 3 billion customer accounts were hacked in that attack four years ago.

The good news -- and there is good news -- is that companies are stepping up their efforts to protect data. Ten years ago, information security was seen chiefly as an IT topic. Now, it has been elevated to the status of a strategic boardroom issue. I attend a monthly meeting of corporate board members, and at nearly every event there is discussion about cybersecurity and how to prepare – at the board level –for cyberattacks.

There’s a saying in the IT world: There are two kinds of companies, those that know they’ve been attacked, and those that don’t know they’ve been attacked. With that in mind, here are five critical things every company can do to prepare for a cyber crisis.

You probably have heard your CEO or a member of the board expound on the need to have a succession communications plan. (Perhaps you have been the one doing the expounding.) And it’s true: public companies should put significant thought into how they will communicate the transition of a C-level executive or board member. But usually, that’s where the conversation ends.

More often than not, communications professionals walk away from these discussions wondering what goes into the plan. With that in mind, today we discuss the five essential elements of a successful succession communications plan.

• Make the plan

As soon as you know your board is conducting a CEO search, create a detailed timeline that will keep your succession communications on track. Name each task with the target completion date and the name of the person or people responsible for implementation. List all the materials that are necessary for the

Note: This is the finale in our three-part series on succession communications.

As you’ve no doubt noticed from our previous posts on communicating CEO and CFO transitions, there’s no such thing as a “standard” executive announcement. And messaging board-level succession carries additional nuances you’ll need to consider as you frame a board change in the best position for long-term success with the investment community.

To assist in that effort, here are five points to guide you in announcing a change on your board.

1. Change is good. Change carries inherent uncertainty, and investors typically frown on that. However, institutional shareholders, and shareholder activists in particular, have emphasized board refreshment in recent years as a means of improving corporategovernance. Proxy advisers Glass Lewis and ISS also view it favorably. The theory here is that more frequent board turnover opens a company to new thinking and the best possible strategic benefits in the long run. Put another way, your board either can be stagnant or growing. Approach your announcement from a confident perspective, because chances are your shareholders will welcome the addition of new viewpoints.

Note: This is the second in our three-part series on succession communications.

A new CEO is the highest-profile personnel announcement a company can make, but a new CFO isn’t far behind. As with any executive transition, the reasons can vary widely – from termination to mutual separation to a legitimate retirement. Regardless of the rationale, however, you’ll need to negotiate a different set of questions when communicating a CFO transition.

Whether it’s the longtime CEO’s retirement or the recent hire’s sudden exit, communicating the transition of the top executive is one of the most critical messaging tasks a company can undertake. So let’s discuss them both: the transitions that are well-planned, thoughtful and strategic, and those that are likely to catch investors by surprise. Here are three things to remember before your company changes CEOs.