Environmental, social, and governance in business parlance, or "ESG", is a term increasingly fraught with politicization. Yet companies remain committed to meeting goals along financial performance alongside broader stakeholder impact. How are business decision makers responding to trends in ESG assessment and reporting?
In partnership with the McKenna Center for Human Development and Global Business at the Keough School for Global Affairs, NDDCEL welcomed expert panelists to shed light on a timely and complex topic. The panel, "Investors, Corporations & ESG: Where We Are, What May Be Next" featured remarks by Bennett Freeman with responses from Georges Enderle and Ray Offenheiser.
Explore highlights of this wide-ranging discussion - along with timely insights from an industry expert - below:
Bennett Freeman highlights a key challenge in the early integration of ESG principles into corporate decision-making: the need for balance between social and environmental factors and financial performance. While the intention to prioritize ESG concerns is critical, Freeman argues that these factors should not drive investment decisions entirely. Instead, business leaders should consider ESG factors alongside potential financial returns to ensure sound investments. This nuanced approach encourages leaders to recognize that successful ESG integration is about finding the intersection between global responsibility and profitability.
Freeman’s perspective offers a realistic view of the current state of ESG, acknowledging that the momentum seen in the past may not return in the near future. However, he emphasizes that the ESG agenda will remain resilient, with ongoing demand for ESG-focused investors and firms. For business leaders, this highlights the importance of staying committed to ESG principles, even during periods of stagnation. While the pace of growth may slow, the long-term relevance of ESG remains undeniable, making it crucial for leaders to continue integrating these practices into their strategies for sustained success.
Professor Georges Enderle's statement highlights the broader, global progress of business ethics, suggesting that despite challenges, the world is moving forward in terms of corporate responsibility and ethical practices. For business leaders, this offers reassurance that the momentum toward ethical business practices, including ESG initiatives, continues to build across industries and nations. As companies navigate complex global environments, the ability to align ethical decision-making with corporate strategy remains critical. Leaders should recognize that business ethics is not a passing trend but a long-term, evolving commitment that offers sustainable growth opportunities both locally and globally.
Enderle underscores the ongoing challenges in addressing emerging issues in business ethics and ESG, highlighting the complexity and urgency of these topics in today’s corporate landscape. For business leaders, this serves as a reminder that navigating the rapidly evolving ESG space requires continuous learning and adaptability. As new ethical concerns and ESG criteria emerge, it is crucial for companies to stay ahead of these changes and integrate them into their decision-making processes. This proactive approach will ensure that businesses not only meet current expectations but also lead the way in shaping the future of responsible business.
Ray Offenheiser emphasizes the lasting momentum behind ESG, which is unlikely to disappear but must adapt to remain effective. CEOs have already invested heavily in creating corporate cultures focused on ESG, making it financially and practically unfeasible to abandon these efforts. With significant sunk costs, businesses must continue to evolve ESG strategies, as they are now integral to long-term success and sustainability.
Offenheiser mentions the concept of “green hushing,” where companies continue their ESG efforts but discuss them less publicly than in the past. This reflects the evolving approach to corporate communication around ESG, where companies may choose to focus on action rather than visibility. For business leaders, this shift highlights the importance of focusing on meaningful, sustainable practices without overemphasizing public acknowledgment. It suggests a more measured approach to ESG, emphasizing long-term impact over short-term publicity.
Industry Insights
We invited Christina Kaminski, ND '08 & MSA '09, Partner at CrossCountry Consulting to share her perspectives from the field.
Please tell us about your role and experience in the ESG space:
I lead CrossCountry Consulting's Chicago market Accounting Advisory practice as well as our national ESG Reporting practice. I view these two areas, Accounting and ESG Reporting, as inextricably linked - quality data and processes underpin any strong reporting or compliance effort. I began in the Audit practice at KPMG where I served both public and private companies for 14+ years, which was an invaluable foundation to my career.
What are you seeing from companies as the terminology evolves and political climate shifts?
The language is certainly shifting but most of the underlying initiatives are not changing, which has shown me that ESG as a concept through which you evaluate risks and opportunities is not going anywhere. Many companies have no desire to state anything publicly and yet are performing materiality assessments and peer benchmarking to understand how these topics may impact their business. Others are taking active steps to make their first disclosures but are understandably cautious. And some companies continue to view ESG as a strategic differentiator and have robust voluntary reporting with a strong infrastructure behind it. In my view, every organization has a responsibility to be ready to answer investor questions if asked, even if no disclosures are made publicly. To do that, you need to know where you stand, with data to back it up.
ESG as a concept through which you evaluate risks and opportunities is not going anywhere.
Christina Kaminski
In a complex and changing environment for ESG, what makes you most optimistic about the future of sustainable business? What challenges are leaders in your field facing, and what gives you hope as you think about meeting them?
In the last year, several major ESG reporting regulations have been rolled back or delayed. And yet, many of our clients are pushing forward with reporting initiatives due to customer demands, investor expectations, and employee interest. This may come as a surprise to some, but if you work in this industry, it makes complete sense. For many companies, regulation was the impetus for getting their house in order on ESG reporting, but they now see the value in having quality ESG data and processes - regardless of their next reporting move.
In terms of what gives me hope, so many working professionals are seeing the intersection between ESG and their own professional background - whether it's data and analytics, accounting, supply chain, finance, etc. The passion of the people who work in this industry is energizing and makes this work fun!
Christina Kaminski
Bennett Freeman is a leading voice in corporate responsibility and human rights, with over 40 years of experience shaping ESG standards across business, government, and civil society. He has played key roles in building global initiatives to protect human and labor rights and has led ESG research and advocacy as Senior Vice President at Calvert Investments. Freeman serves as an Associate Fellow at Chatham House, advises multiple human rights and responsible business organizations, and is a member of the U.S. State Department’s Responsible Business Advisory Committee. A former Clinton administration appointee, he continues to drive ethical leadership and sustainable business practices worldwide.
Georges Enderle is a leading scholar in international business ethics and professor emeritus at the University of Notre Dame. A former president of the International Society of Business, Economics, and Ethics (ISBEE), Enderle co-founded the European Business Ethics Network and has advanced corporate responsibility research globally. His work focuses on globalization, wealth creation, business and human rights, and corporate responsibility. Enderle has authored and edited 36 books, contributed to over 170 articles, and recently co-led the Global Survey of Business Ethics 2022–2024.
Ray Offenheiser is Director of the McKenna Center for Human Development and Global Business and a professor of the practice at the Keough School of Global Affairs. A widely respected nonprofit leader, he served as president of Oxfam America for 20 years and held leadership roles with the Ford Foundation in Asia and South America, among others. Offenheiser has advised major global organizations and initiatives, including the G20, the World Economic Forum, and the ONE Campaign, and continues to shape strategies for sustainable development and global business.
More industry perspectives:
Sustainability reporting trends to help navigate a rapidly evolving landscape (Deloitte)
Financial services industry’s answer to ESG regulations and stakeholder demands (Deloitte)
Environmental, social, governance (McKinsey)
ESG risks in 2025: Responding to regulatory and supervisory pressure (KPMG)
ESG investment continues amid a tough political environment (Corporate Governance Institute)
For further reading:
Mendoza faculty research:
CSR disclosures in buyer-seller markets: Research design issues, greenwashing and regulatory implications, and directions for future research (S. Vera-Muñoz)
Climate risk materiality and firm risk (Matsumura, Prakash & Vera-Muñoz)
Environmental violence and enterprise: The outsized role of business for environmental peacebuilding (R. Marcantonio)