Governance: Putting the 'G' in ESG

A study found that over the 12 months, governance consistently ranked second, behind only a company's products, as a driver of corporate reputation

Not too long ago, the success of a company was determined purely by its financial performance.

Its profit and loss account, balance sheet statements, share price, ROI, ROE — these were the metrics that set a successful business apart from a failing one.

That no longer holds entirely true.

A business still has to be profitable, it still has to have the right level of leverage, a healthy return on invested capital.

These are outcomes that any company aspires to. But the influences that determine them have undergone a sea change in today’s digitally-enabled modern day world.

Once the quality of a company’s products or