Transformational Governance

Investors, consumers and politicians around the world are increasingly expecting companies and CEOs to actively work towards a better society. For example, the Edelman Trust Barometer 2021 shows that 86% of respondents expect CEOs to speak out on social issues. Transformational governance provides a framework for companies to better meet these increased demands.

As a holistic and principles-based approach, transformational governance calls on companies to be more accountable, ethical, inclusive and transparent. This includes internal processes such as creating a culture of integrity and compliance within the company, but also external factors in the business environment such as transparency, the rule of law and strong institutions. Companies can make a positive contribution to improved economic conditions through stakeholder consultations, advocacy, collective action or other capacity building measures.

The content and requirements of transformational governance are based on SDG 16 (peace, justice and strong institutions), which forms the basis for compliance with the Ten Principles of the United Nations Global Compact and the other SDGs. The promotion of SDG 16 is also essential for companies in order to create long-term stability and an enabling environment, but also to fulfil their growing social responsibility.

 

Together with partners across business, the UN system, civil society, and academia, we support businesses to adopt a holistic approach to Transformational Governance through SDG 16.