Ann Arbor Times

On a recent episode of the podcast "Business & Society," three professors from the University of Michigan's Ross School of Business discussed the challenges and adaptations in corporate governance amid current political and environmental shifts.

Cindy Schipani, a professor of business law, highlighted the importance of companies considering the well-being of employees, communities, and the environment alongside shareholder interests. Schipani stated, "Some companies recognize that it is in the interest of shareholders also to consider the interest of the employees, the communities and the environment. Companies that do so will tend to find employees more productive. Customers might be more likely to buy their products and services. Whereas bad policies, such as bad labor and environmental policies, might lead to boycotts and lawsuits. I think companies with strong leadership and a strong ethical backbone tend to recognize this."

Norm Bishara, professor of business law and ethics, emphasized the role of education and knowledge sharing in the corporate landscape. He said, "I think more than ever, it’s important to focus on the mission of education and knowledge building and to focus on creating that value and effectively sharing it. So that means, in the student context, making sure they’re presented with a range of ideas to critically evaluate the options. Those are the skills that will be durable throughout their careers, and those are things that will be valued in the future of work as well."

Andy Hoffman, who specializes in sustainable enterprise, pointed out the influence of policy on sustainability efforts. Hoffman mentioned, "We had a lot of companies out there reducing their carbon footprint. That’s all well and good, but the most important impact that a company has on addressing the issue of climate change is supporting policies to force the market to move in that direction."

The "Business & Society" podcast is produced by JT Godfrey and Jeff Karoub, with technical and editorial contributions from Jonah Brockman and Mads Henke, respectively.