While ESG has been common in other industries for quite some time, only recently has it garnered more momentum in the health care space. In a recent article published by the Heath Care Compliance Association's monthly periodical Compliance Today, Kari Czeszewski and Ben Bresnick discussed the emergence of ESG considerations in health care.
Overview
Environmental, social, and governance (ESG) is a framework or set of beliefs that are adopted by corporate entities as part of their business strategy and operations. ESG is predicated on the belief that a corporate entity can exist to simultaneously create profit or fulfill its nonprofit mission while also considering and making decisions that contemplate and account for environmental and social concerns. ESG thinking affects stakeholders—anyone that has an interest in the company (e.g., vendors, suppliers, customers, employees, subcontractors, government entities, or the community, especially for nonprofit hospitals)—of the company and holds that the stakeholders should have a say in what ESG investments the company makes.
Takeaways
Environmental, social, and governance (ESG) is a belief that a company can be profitable while simultaneously making decisions that consider environmental and social concerns in the community.
Many industries require ESG reports, but the healthcare industry does not (yet).
Healthcare companies should consider adopting ESG criteria now to prepare for reporting and auditing requirements in the future.
Healthcare companies can adopt and incorporate ESG criteria by recycling/reusing medical devices, focusing on social initiatives for the community served, and creating a pleasant work environment.
Healthcare compliance programs can adopt and incorporate ESG criteria by creating a committee, conducting needs assessments, widely publicizing the mission, and determining a strategy for achieving short-term goals.
Please download the full article below.
This article was originally published in Compliance Cosmos. Copyright 2021 Compliance Today, a publication of the Health Care Compliance Association (HCCA).
© Copyright 2021. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.
