While the ESG Debate Continues, It’s Time for Business Leaders to Focus on the Work That Matters
Stakeholder Business
We help leaders build thriving stakeholder businesses that matter
Editor’s Note: Discussions around issues like ESG have become charged, with debates often overshadowing the urgency of action. One thing is clear—now, more than ever, the world needs leaders who are committed to making a real impact. It’s time for those who truly understand the stakes to rise above the noise and get to work. The need for businesses to act responsibly and with purpose is not a political issue—it’s a moral and economic imperative. This is the moment for business leaders to lead unapologetically and drive change that matters.
On November 14, 2024, Stakeholder Business hosted a compelling Masterclass featuring Sunya Norman , Senior VP of ESG Strategy and Engagement at Salesforce, and moderated by Co-Founder Meghan French Dunbar . This interactive session brought together business leaders to explore the transformative potential of Environmental, Social, and Governance (ESG) principles when authentically embedded into organizational strategy.
Drawing on Salesforce 's FY24 Stakeholder Impact Report, Norman shared tangible achievements, such as reducing 50,000 tons of CO2 annually through Distributed Renewable Energy Certificates (D-RECs) and leveraging the Net Zero Cloud to track emissions across the value chain. Beyond highlighting successes, Norman delved into the challenges businesses face in implementing ESG, including navigating complex global sustainability regulations, integrating ESG into financial performance metrics, and fostering stakeholder trust.
The discussion resonated deeply with participants, who engaged in a robust Q&A session focused on applying these strategies to their own organizations. Key topics included aligning ESG initiatives with long-term business goals, avoiding performative practices, and measuring impact effectively. Norman emphasized that ESG is not a “nice-to-have” but a business imperative, offering a competitive edge while addressing critical environmental and societal challenges.
This Masterclass reinforced a vital truth: ESG, when implemented authentically and proactively, delivers measurable outcomes that extend beyond mere optics. Businesses that embrace these principles are positioning themselves not only to lead but to redefine the benchmarks for success and resilience in addressing the challenges of our time.
From Criticism to Opportunity: Adopting a “From What to What” Approach
Too often, discussions about ESG are derailed by its critics, who dismiss it as superficial, politicized, or incompatible with financial performance. But this criticism often misses the point: it’s not about the phrase ESG—it’s about the work that needs to be done. Whether we call it ESG or something else, the real focus must be on creating meaningful impact.
The way forward is adopting the “From What to What” framework. This approach moves beyond the labels and rhetoric, guiding businesses to address the challenges that truly matter. It’s about shifting from outdated, transactional ways of operating to future-ready models that prioritize resilience, innovation, and long-term value creation.
This isn’t a theoretical exercise—it’s a mindset and a methodology that forward-thinking companies are already applying to achieve measurable outcomes, create lasting impact, and build trust with stakeholders. By focusing on the critical work rather than the terminology, businesses can cut through the noise and drive the kind of transformation the world urgently needs.
Stakeholder Business’ The Five Advantages in Action
Stakeholder Business’ The Five Advantages framework brings the “From What to What” approach to life, offering a practical roadmap for companies committed to making an impact. Each advantage represents a transformational shift—from outdated, limited ways of operating to dynamic, future-ready models that prioritize sustainability, equity, and innovation.
Through real-world examples, we see how forward-thinking businesses are embracing these shifts to align purpose and profit. These companies prove that The Five Advantages are more than a framework—they are the foundation for building companies of consequence.
Environmental Sustainability: From Risk to Responsibility
For decades, businesses have approached environmental issues primarily through the lens of risk mitigation—focused on avoiding harm rather than driving positive change. The shift to Environmental Sustainability requires moving from Environmental Risk to Responsibility, where businesses actively restore ecosystems and reduce their carbon footprint while finding innovative paths to profitability.
Interface ’s sustainability leadership illustrates this transformation. Through its “Climate Take Back” initiative, Interface has developed carbon-negative carpet tiles, using materials that store more carbon than they emit during production. The company also employs closed-loop manufacturing, recycling old tiles into new ones and significantly reducing waste. Interface isn’t just minimizing harm—it’s redefining what sustainable manufacturing can achieve. This isn’t compliance; it’s leadership.
Healthy Relationships: From Transactional to Transformational
Many businesses still view stakeholder relationships as transactional, valuing employees, suppliers, and communities solely for their immediate contributions. However, long-term resilience depends on moving from Transactional to Transformational relationships that prioritize trust, mutual benefit, and shared success.
BIGGBY COFFEE 's “Farm Direct” supply chain transformation exemplifies this shift. By committing to sourcing 100% of its coffee through direct trade relationships by 2028, BIGGBY ensures fair compensation for farmers while investing in coffee-growing communities through education, healthcare, and infrastructure projects. This approach doesn’t just strengthen the supply chain—it builds a foundation of shared prosperity and trust. BIGGBY’s approach shows that transformational relationships create resilience and deliver value for all stakeholders.exemplifies this shift. By committing to sourcing 100% of its coffee through direct trade relationships by 2028, BIGGBY ensures fair compensation for farmers while investing in coffee-growing communities through education, healthcare, and infrastructure projects. This approach doesn’t just strengthen the supply chain—it builds a foundation of shared prosperity and trust. BIGGBY’s approach shows that transformational relationships create resilience and deliver value for all stakeholders.
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Growth Culture: From Stagnation to Innovation
A stagnant workplace culture focused on output alone limits both individual and organizational potential. The evolution to Growth Culture requires moving from Stagnation to Innovation, where collaboration, creativity, and employee development become central to success.
Menlo Innovations embodies this transformation with its focus on joy-driven work. Practices like pair programming foster constant mentorship and collaboration, while their open office design encourages transparency and idea-sharing. These intentional strategies create an environment where ideas flow freely, unlocking human potential to solve complex problems and deliver exceptional results. Menlo’s growth culture demonstrates that investing in people isn’t a distraction—it’s the key driver of business innovation and resilience.
Intentional Inclusion: From Passive Metrics to Meaningful Action
Many diversity and inclusion efforts fall short because they focus on passive metrics—meeting quotas without addressing systemic inequities. The shift to Intentional Inclusion means moving from Passive Metrics to Meaningful Action, creating environments where all individuals feel valued, empowered, and able to thrive.
Televerde ’s Workforce Model is a striking example of this shift. By employing incarcerated women, Televerde provides professional training, mentorship, and career pathways that break cycles of recidivism and transform lives. Beyond its social impact, Televerde builds a loyal and skilled workforce that drives its business success. Intentional inclusion isn’t about checking boxes—it’s about creating pathways for empowerment and impact.
Shared Prosperity: From Profit-Only to Inclusive Success
Traditional business models prioritize shareholder returns above all else, often ignoring the broader impact of their operations. Shared Prosperity requires a shift from Profit-Only to Inclusive Success, where financial gains are shared among all stakeholders.
Charter Next Generation ’s Employee Ownership Program demonstrates this transformation. By granting equity shares to all employees, CNG fosters a culture of shared investment and responsibility. Employees are not just workers—they are owners, fully engaged in the company’s success. Paired with sustainability programs and community initiatives, CNG proves that shared prosperity is not a cost—it’s a strategy for innovation and long-term growth.
Closing the Loop: A Call to Action
The Stakeholder Business Masterclass with Sunya Norman reminded us of the transformative potential of ESG principles when paired with authentic commitment and strategic action. But we must also recognize the challenges: ESG is under fire. Critics have questioned its effectiveness, dismissed it as superficial, and painted it as a politically charged distraction. These criticisms, however, do not diminish the urgent need for businesses to address the environmental, social, and governance issues that affect all stakeholders.
At this moment of scrutiny, it is incumbent upon business leaders—those who endeavor to make a positive impact on all their stakeholders, not just shareholders—to rise to the challenge. ESG, when approached authentically, is not a burden or a liability. It is an opportunity to drive innovation, foster trust, and create resilience in a world that desperately needs principled leadership.
Stakeholder Business’ The Five Advantages framework provides a clear and actionable roadmap for businesses ready to lead. It moves beyond rhetoric, offering a pathway to align purpose and profit, overcome challenges, and create lasting impact for all stakeholders.
The question is no longer whether ESG works—it’s whether business leaders are willing to step forward and lead with clarity and courage. This is the moment to cut through the noise, embrace accountability, and take action. Together, we can build companies of consequence that leave a legacy of meaningful, lasting impact.
If you are ready to take the next step in transforming your leadership, we invite you to explore The Five Advantages Experience. This six-month program is designed to help CEOs and their leadership teams develop a personalized Expanded Scorecard of Success and a practical action plan for implementing the Five Advantages in their organizations. Through monthly sessions, guided collaboration, and peer learning, participants gain the tools and insights needed to drive meaningful change.
Visit www.stakeholderbusiness.com/thefiveadvantages to learn more and apply to participate. The opportunity to lead with purpose and impact is here—don’t wait to make it yours.
It’s time to get to work.
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