The “Dodd-Frank” legislation was enacted largely because of the financial crisis of 2008. What is your opinion about, for example, the following: 1) say-on-pay 2) insiders hedging company stock 3) pay-ratio disclosure 4) conflict minerals disclosure? Should these provisions be maintained? Why or why not? Who benefits from these disclosures?
Do you agree with the SEC commissioner that certain new disclosure rules do not provide information useful to a reasonable investor, but rather are being required as part of political or social activism? Should the SEC require such rules?
What are some potential negative consequences of demanding that firms report some of the mentioned ESG and sustainability-type measures? Who is requiring these disclosures? Why do you think they are?
If you were a CEO, should “maximizing ESG measures” be part of your firm’s stated objectives? Who wins? Who loses? How would you compensate your employees?
In your opinion, should standards covering concerns related to environment, society, and governance (ESG) be based upon the information desires and needs of market participants (investors) or what the SASB thinks investors “should be” interested in? What conclusion would you draw if the standards that are developed by the SASB do not affect investment decisions?
In your opinion, can a firm pursue value maximization for shareholders and simultaneously pursue sustainability/social responsibility? Are these goals at odds with each other? If so, how? What advice would you give to Unilever’s CEO?
How do you think the SASB will affect financial reporting? Auditing? Firm valuations and investor decisions? Why do you think the board of the SASB wanted the former head of the FASB, the former chair of the SEC, and the former mayor of NYC?
Do you agree that newly required disclosures of environmental and social issues will increase the EU’s competitiveness and create more jobs? If so, how? If not, why not?
Do you believe that the disclosure about conflict minerals will be useful? How would you define useful?
Should the SEC force companies to adopt SASB standards, in addition to FASB standards? If you were a CEO, would you voluntarily use SASB standards? What are the costs and the benefits of using SASB standards?
Will the proposed disclosures about sustainability affect your decision to invest in a firm? To work for a firm? Why or why not?
Should sustainability standards be promulgated and should firms be required to adopt them? Should they be audited? Who benefits from such disclosures? Would these disclosures affect decisions you make about a firm? How?
How do carbon-emission credits control pollution if a firm is able to buy unlimited credits to pollute? Who ultimately pays for these credits? Is it possible for California to prevent the pollution emitted in surrounding states? What do you think the journal entry would be for the purchase of carbon credits?
How does the added information about integrated reporting (i.e., reporting about environmental, social, and governance factors, or ESG) make investors a “happier group”? Do you agree with this assessment? Should ESG reporting be mandated? Why or why not?
Are corporations people? Is the “human asset” recognized as an asset on the balance sheet? Should it be? If so, how would you measure its value?
