By including diverse groups on boards , organisations reflect the demographics of their stakeholders and customers , enhancing their ability to understand and respond to diverse market dynamics .
Although governance risks pose challenges , it is a crucial part of ESG . Effective governance ensures compliance , and accountability while addressing environmental and social risks . It integrates ESG considerations into decision-making , drives sustainable practices and attracts responsible investment . Strong governance builds trust , enhances stakeholder confidence and enables organisations to navigate complex ESG landscapes for long-term value creation and positive societal impact .
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