Governance

The Governance criterion pertains to how a corporation conducts its policies, actions, and guidelines. This aspect of ESG aids investors in their decision-making, since it is crucial to understand the risks and growth opportunities associated with a corporation’s governance.

Examples of governance factors include:

Company leadership
Shareholder rights
Corruption and bribery
Diversity, structure, and role of board composition

Tax strategy
Whistleblower programs
Donations and political lobbying
Executive compensation and policies

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