Think environmental, social and governance (ESG) factors only matter to specialist investors? While ESG standards may have been the exclusive purview of sustainability investors a few decades ago, that is no longer the case. “Only two decades ago, concerns about climate change, water scarcity, exposure to corruption, working conditions in the supply chain and gender equality were barely on the agenda of company executives. They were considered externalities or were dealt with through philanthropic approaches with little or no impact on the bottom line,” noted Harvard Professor of Management Practices Dr. Robert Eccles, and former United Nations Global Compact Executive Director Georg Kell.  But times have changed.

Just two years ago, the Organization for Economic Co-operation and Development (OECD) began promoting “responsible business conduct for institutional investors” in its Policy Framework for Investment. In it, the OECD encourages investors to engage with corporate leadership on ESG risk and contends that ESG issues represent part of a company’s fiduciary duty when evaluating long-term value. It’s an approach that more institutional investors are taking to heart. In an article on EthicalBoardroom.com, Michelle Edkins, a Managing Director and Global Head of Investment Stewardship at BlackRock writes, “An emphasis on investing for the long-term, changing client and societal expectations, and better data, reporting and research have all influenced a steady mainstreaming of ESG considerations by investors.”

With the rapid acceleration of cloud software, Internet of Things (IoT) and advancements in FinTech, the financial and technology industries saw significant increases in cyberattacks over the past year. Attackers find vulnerabilities in supply chains and software, capitalize on lax security updates and use social engineering to manipulate end-users.

As hackers become more creative in their subversive techniques, businesses need to become more proactive in educating their workforce and stepping up their cyber incident response plans. Businesses should consult with their vendors, third-party suppliers and stakeholders in every business unit to ensure continuity, mitigate risk and verify that security measures are being employed and regularly updated.    

Below are summarized findings from the recent NTT Security Global Threat Intelligence Report that focus specifically on the finance and technology sectors in the Americas, which account for the most highly targeted attack sectors in this region. Recommendations from the National Institute of Standards and Technology Framework are included here as well. Organizations can also look to the Department of Homeland Security’s National Cyber Incident Response Plan for guidance on dealing with and addressing cyber incidents. 

Finance and Technology Top the List of Targets

Attacks to the finance sector nearly tripled, accounting for 43 percent of attacks compared with 15 percent the previous year. Attacks targeted at the technology industry sector increased to 27 percent of attacks, up from 11 percent in the previous year. For comparison, manufacturing was the most attacked sector in 2016, with 23 percent of attacks, but has since fallen to five percent of attacks in 2017.

Investors. Consumers. Employees. Suppliers. They all want­­—even expect—the companies they associate with to operate with transparency and trust. But lately, trust has been in short supply. In the U.S., for example, trust in institutions—government, business, media and NGOs—declined a record 23 points in the annual Edelman Trust Barometer survey, which covers 28 markets around the globe. Business alone saw a 10-point, year-over-year decline. Clearly, companies in America need to focus on rebuilding trust, but how? 

Embrace Corporate Social Responsibility

Corporate Social Responsibility (CSR) and Environmental, Social and Governance (ESG) criteria can play a significant role in establishing or regaining trust. What do CSR and ESG entail? CSR involves implementing a business model that includes accountability—to stakeholders and consumers—on a range of societal and environmental issues. Similarly, ESG focuses on how companies tackle key issues such as climate change and human rights, which financiers increasingly consider alongside traditional financial factors when evaluating investment portfolios.

Have you ever tried having a productive day at work after being involved in a head on collision the previous day? It is pretty rough! The concussion sure made it hard to focus on what Sally was explaining at the executive meeting.  You did not make the best decisions that day and I’m pretty sure you ruined your chances of bringing that one strategic partnership to fruition when your slurred speech was mistaken for intoxication. Actually, I bet you didn’t go to work the next day and I bet your employer told you to take the time you needed to heal, see the right doctors and come back stronger. Physical health issues can affect anyone at any time. For that reason, many workers are given medical insurance, sick time and other benefits to ensure they can recuperate before returning to the work place.

Yet, less visible injuries occur to our mental health and they can be just as frequent and debilitating. However, rather than providing the necessary support to workers, many are not given benefits to take time off or get a mental health checkup. Rather than receiving well wishes of getting better, most people with mental health issues deal with them in quiet because of stigmas that exist. 

I decided to write my blog this week on this topic after being inundated with news reports in the recent days, weeks, months and unfortunately even years of crime and other tragic outcomes related to various forms of hate, anger and frustration.  As I question my bi-racial child’s future in a hate entrenched society, and reflect on the loss of a friend at the Pulse nightclub shooting in Orlando last year, I can’t help but think that there has got to be something that could have been done to prevent this. Is there something I can do? Is there something anyone can do other than teach our children how to show compassion, consideration and love for others?