Companies should resist political pressures and stick to ESG, DEI commitments: Incoming DBS CEO

Key Takeaways:

• Tan Su Shan urges companies to honor their ESG and DEI commitments.
• Leadership is about being responsible and consistent, not wavering under political pressures.
• Companies should not adjust commitments to appease changing administrations.
• Tan Su Shan will become DBS’s first female CEO on March 28.
• Several U.S. companies have backtracked on ESG and DEI commitments since Donald Trump’s election.

Championing Responsible Leadership

Tan Su Shan, the Deputy CEO of Singapore’s DBS Group and soon to be its first female CEO, is calling on companies to stay true to their commitments to ESG (Environmental, Social, Governance) and DEI (Diversity, Equity, Inclusion) initiatives. As she prepares to assume leadership on March 28, replacing Piyush Gupta who has led the bank since 2009, Tan emphasizes that true leadership requires responsibility and consistency.

“Leadership is about being responsible, not saying one thing and doing another,” Tan stated during a session on corporate leadership at CONVERGE LIVE. She underscored the importance of sticking to organizational commitments, particularly those aimed at reducing carbon footprints, as long as they are financially viable.

Navigating Political Pressures

In an era where political landscapes can shift rapidly, Tan advises companies against altering their commitments to align with changing administrations. “Don’t chop and change just because you’re trying to ingratiate yourself with another administration,” she cautioned. Her comments highlight the challenges businesses face when external political factors pressure them to modify or abandon their sustainability and inclusivity goals.

The Significance of Upholding ESG and DEI

Tan’s remarks come at a time when several U.S. companies have reportedly backtracked on their ESG and DEI pledges following the election of Donald Trump as president. These reversals raise concerns about the influence of politics on corporate ethics and long-term sustainability efforts. By urging firms to remain steadfast, Tan is advocating for a corporate culture that prioritizes ethical commitments over short-term political gains.

A Milestone in Leadership

Joining DBS from Morgan Stanley in 2010, Tan Su Shan’s ascent to CEO marks a significant milestone for the bank and the broader business community. Her leadership not only represents progress in gender representation at the highest levels but also brings a steadfast commitment to ethical corporate practices. Her stance on maintaining ESG and DEI commitments sets a precedent for other leaders in the industry.

Conclusion

As Tan Su Shan steps into her role as CEO, her message is clear: companies must demonstrate responsibility and integrity by upholding their commitments, regardless of the political climate. Her emphasis on consistent leadership serves as a call to action for businesses to prioritize long-term ethical goals over the fluctuating tides of politics. In doing so, companies can foster trust, drive sustainable growth, and contribute positively to society.