TheCorporateCounsel.net

According to the latest CPA-Zicklin Index, most large companies say their board oversees political spending – but few smaller companies are talking about it. PwC’s annual director survey seems to support that finding. Here’s one of the takeaways:

Only 39% of directors say their board has discussed the company’s stance on social issues in the past 12 months. Even fewer—30%—say they have discussed corporate political activity.

The survey gathered responses from 700+ directors. It has some other interesting findings as well. For example, 64% of male directors say that board diversity initiatives are driven by political correctness and that shareholders are too preoccupied with the topic. With the Supreme Court poised to overturn colleges’ ability to consider racial diversity in admissions, corporate boardrooms also seem to be growing skeptical of the near-term benefits of diversity, even while acknowledging that it brings unique perspectives to decision-making and prioritizing diversity in succession planning.

On the topic of ESG oversight, the survey notes a gap between small & large companies in board understanding of ESG data controls. Specifically, directors lack confidence in the board’s understanding of climate risk/strategy and carbon emissions, compared to human capital-type topics. And compared to a year ago, 9% fewer directors view ESG issues as impacting company financial performance. Again, the results vary based on demographics – with male directors being less likely to see ESG’s connection to strategy & performance.

– Liz Dunshee