Gartner Research

CSCOs Should Plan for Pressure From Investors to Address Corporate Social Responsibility Across Value Networks

Published: 16 June 2015

ID: G00277734

Analyst(s): Pam Fitzpatrick

Summary

More large, mainstream institutional investors are integrating sustainability principles into their proxy vote decisions, valuations and risk assessments. CSCOs should plan to support the CEO and CFO with supply chain strategies that improve the company's resilience and long-term risk profile.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • As more mainstream investors include ESG factors in proxy vote and investment decisions, CSCOs will experience more pressure to mitigate CSR-related risks in supply chain
  • New trends in determining and reporting materiality will complicate the CSCO's decisions about supply chain strategy and trade-offs
  • In industries where supply chain management is identified as a material issue, CSCOs should prepare to take greater responsibility for risks and behaviors in the end-to-end supply chain

Appendix

  • Definitions

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