ABSTRACT
A sustainability committee supporting the board of directors in its role is a powerful tool in enhancing a company’s governance framework. Chapter 4 outlines the benefits and pitfalls of a dedicated sustainability committee and presents various types of committees. As the case of Aracruz demonstrates, one central issue is the engagement of external stakeholders within the governance arrangements. For companies with a troubled history of engagement with critical stakeholders it might be best to set up a stakeholder advisory board, helping to align stakeholder and company priorities before problems arise. Finally, multinational companies face the challenge of creating a consistent sustainability message across global operations, but at the same time need to customize the company’s approach to different regions. In these cases we suggest adopting a glocal approach - creating a strategy bottom-up and identifying the issues which matter to all regions.
