ReportEuropean Financial Reporting Advisory Group (EFRAG)

European Sustainability Reporting Standards – ESRS G1: Business Conduct

ESRS G1 sets mandatory disclosure requirements on business conduct, covering corporate culture, supplier relationships, anti-corruption and bribery, whistleblower protection, political influence and lobbying, and payment practices, especially toward SMEs. It links governance and conduct to impact, risk, and opportunity management, making companies explain how business behavior supports transparent, sustainable practices for all stakeholders. 

Notes on Related Topics

Legal Risk or Uncertainty (A) – ESRS G1 clarifies new disclosure expectations under the EU’s sustainability reporting framework, exposing companies to regulatory and enforcement risk if they under-report or mis-report business conduct, corruption incidents, or political activity. 

Reputational Risks (A) – Required disclosures on corruption cases, whistleblower protections, and payment practices make opaque or irresponsible conduct visible to investors, media, and civil society, increasing reputation stakes for boards and executives. 

Reporting Disclosures (B) – The standard details specific narratives and metrics companies must publish on corporate culture, investigations, political contributions, and lobbying topics, embedding business conduct into core sustainability statements. 

Lobbying Policy Influence (B) – G1-5 compels disclosure of political influence and lobbying activities, including topics, positions, and financial or in-kind contributions, directly aligning public-policy engagement with material impacts, risks, and opportunities. 

More Resources

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ReportUN

Widely accepted multi-sector framework outlining expectations for companies to evaluate and disclose their commitment to human rights, identify salient issues, identifying processes for responding to claims, conducting due diligence and identifying strategies to prevent, mitigate or remediate adverse impacts on individuals and communities. Supports corporate political responsibility by outlining political rights as human rights, and providing established processes to draw on. 

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ReportHeritage Foundation

This article outlines how crony capitalism distorts the market, violates the principles of free markets, and risks value creation for all, as reflected in the Heritage Foundation's Index of Economic Freedom.

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ReportTransparency International's Global Corruption Report

What It Is: An early analysis in Transparency International's 2009 Global Corruption Report, examining the line between legitimate corporate lobbying — an accepted input to democratic decision-making — and lobbying that captures regulations and policy for private benefit. 

Why It Matters: The report backs its argument with striking figures: politically connected firms are estimated to account for nearly 40% of market capitalization in the UK and 80% in Russia; roughly 2,500 lobbying organizations and 15,000 lobbyists compete for influence in Brussels alone; and US state-level lobbying spending averages $200,000 per legislator, with five lobbyists vying for each lawmaker's attention. Outlines the importance of considering Legitimacy of lobbying efforts, and Responsibility not to crowd out other voices." 

How to Use It: Use this chapter's distinction between legitimate lobbying and policy capture as a discussion input when running a Public Affairs Governance Review with Third Side Strategies' Principled Influence Guide — particularly Step Two's policy assessment — to help sharpen the language in your Public Affairs Engagement Policy defining where advocacy ends and undue influence begins.

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ArticleSSIR

Outlines a framework to help companies determine how to engage with social issues and an appropriate level of engagement—ranging from supporter to champion—describing the key to an effective engagement plan that integrates functional silos, all bolstered by compelling case studies.

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This seminal report from Freshfields Bruckhaus Deringer, addresses the question of whether institutional investors such as pension funds and insurance companies are legally permitted to integrate environmental, social and governance issues into their investment decision-making and ownership practices. The study describes the legal framework for institutions in Australia, Canada, France, Germany, Italy, Japan, Spain, the UK and the US.

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ReportAccountAbility, UN Global Compact

This guide provides a framework for companies and NGO's to use to determine whether their lobbying practices are responsible.

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BookBerrett Koehler

The book opens by establishing the minimum expectation that businesses support the right rules of the game—those rewarding long-term value creation rather than destruction—and shows how companies can live their values through cross-sector collaboration, eco-efficiency, and strategies advancing prosperity, planet, and people, supported by real-world cases.

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BookHarvard University Press

Mancur Olson’s classic work explains why individuals often fail to organize effectively around shared interests, even when collective action would benefit all. His “free rider” problem and distinction between small and large groups reshape understanding of labor unions, corporations, and political coalitions. Olson’s framework underlies modern theories of governance, lobbying, and institutional design—key foundations for Corporate Political Responsibility. 

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WebsiteBraver Angels

The Depolarization Dojo is an interactive training platform designed to help individuals practice skills for reducing political polarization and engaging constructively across disagreement. Through simulations, exercises, and dialogue-based learning, it teaches users how to de-escalate conflict, challenge assumptions, and strengthen civic trust in increasingly polarized social and organizational environments.

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ArticleMIT Sloan

Presents a framework for when companies should present forceful or tempered political positions based on their publicly stated values and materiality.

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Website

The Long-Term Stock Exchange (LTSE) listing standards include expectations that companies will take responsibility for long-term decision-making across strategy, governance, executive compensation, stakeholder engagement, and investor relations. These standards are designed to help businesses build sustainable value over time for all stakeholders, rather than focusing on short-term gains, allowing investors to better assess long-term capital investments.

 

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ReportSaylor Academy

This textbook section introduces major corporate and agency public-relations subfunctions: issues management, media and community relations, CSR and philanthropy, investor relations, marketing communications, government relations, lobbying, internal communication, crisis management, and more. It shows how communication, advocacy, and stakeholder engagement are structured inside organizations, shaping how they respond to risks, opportunities, and public scrutiny.

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