T he latest focus of our Explore Business discussions for high school students is an acronym that is transforming business: ESG.

ESG, which stands for Environmental, Social and Governance, has become the unifying lens people are using to evaluate companies’ efforts to do more than just make a financial profit. Stakeholders, including investors, are asking: how well does a company score on ESG? And yet ESG involves more than just screening a company’s beliefs and actions toward people and the planet. As firms try to contribute positively to the environment, address governance activities promoting sustainability, and support social causes, they are also thinking hard about how to incorporate ESG factors into their business strategies. They must meet the changing demands of investors, customers, employees and communities, and comply with new regulations.

This is a powerful and necessary conversation for the next generation. As future business leaders and contributors to the workplace and economy, today’s youth must build awareness about the ESG movement and explore their role as catalysts for this change.

This Explore Business mini-site delves into the second topic in the Wharton School’s recent Beyond Business Series: Redefining Corporate Governance. The “G” for Governance is an essential part of ESG as businesses embrace sustainable practices and align their purpose and mission more closely with environmental and social demands. Corporate governance describes the rules, practices and processes used to direct and manage a company, which is often overseen by a board of directors (refer to the Teachers Guide for more details). 

In this discussion, Erika James, Dean of the Wharton School, joins a panel of experts to address the governance piece of ESG, in particular how boards can redefine corporate governance to maximize a company’s social impact while balancing the needs of all stakeholders. Dean James is joined in the discussion by Mary-Hunter “Mae” McDonnell, an associate professor of management at Wharton; Luke Taylor, a Wharton associate professor of finance; and Brian Stafford (W’98), CEO of Diligent Corporation, which develops and provides software that helps boards of directors meet modern challenges, like ESG.  

The activities on this page connect to the ESG: Redefining Corporate Governance discussion and provide opportunities for high school students to Explore Business. The linked worksheets will help direct students’ exploration of the shorter video segments, with guided questions and defined vocabulary. We encourage students to enjoy discovering new business insights – and contributing their own ideas to this important conversation.