Revisiting ESG Terminology

IUCN Red List of Threatened Species Categories
Common sector-specific human rights-related risks by the Ethical Trading Initiative
Analysis conducted by the International Programme on the Elimination of Child Labour (IPEC)
  • Increase the board’s independence from management and oversight, by preventing conflict of interest between the CEO’s role of managing the company and the chair’s role of presiding decisions on hiring, auditing, compensation and replacement of management (based on agency theory)
  • Establishing a centralized state of authority leads to effective management and enables management and the board to respond swiftly to changing environments (based on stewardship / administrative theory)
  • Prevents unnecessary distractions from power struggles
  • The function of the separate chair position varies between organizations
  • Separate chairs don’t necessarily mean the chair is seen to be independent



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Brian Pak

Brian Pak

Navigating life through arts, culture, philosophy, politics, tech and entrepreneurship. Follow my latest work at!