In today’s rapidly evolving business landscape, companies everywhere face mounting scrutiny—whether for not backing a social cause or for taking a bold stance on one. It’s a delicate balancing act: driving business performance while addressing some of the most pressing challenges of our time, especially those in the realm of Environmental, Social, and Governance (ESG). With stakeholders, shareholders, and rightsholders demanding action on these critical issues, leaders are seeking strategies to navigate ESG complexities, all while staying true to their mission and achieving profit goals.
At a recent Ivey Impact Live event, The Leadership Challenge: Tackling Tradeoffs and Tensions for a Sustainable Future, a panel of leaders from across the country delved into this unique leadership challenge head-on. The panel – featuring Duncan Fulton (Restaurant Brands International), JP Gladu (Mokwateh), Oana Branzei (Ivey Business School), and moderator Dusya Vera (Ivey Business School) – explored the tensions of ESG leadership, sharing valuable insights and real-world examples. From this engaging discussion, we’ve distilled the top seven strategies to help you effectively lead in the ESG space.
1. Let your customers be your compass
The long-standing mantra, “the customer comes first,” has been the cornerstone of business success in building trust, fostering loyalty, and driving growth. Regardless of the industry, a company’s lifeblood is its customers. According to the panelists, this principle holds equally true when navigating ESG decisions. By genuinely listening to their customers' needs and perspectives, businesses can lay the groundwork for informed, strategic choices.
“If you are focused on being led by the people you sell things to, and who you are accountable to, then you’ll ultimately make the right decisions,” said Fulton.
2. Embrace Indigenous knowledge systems
As original stewards of the land, First Nations communities have long possessed valuable knowledge systems that align with the tenants of ESG. Yet, as Indigenous business leader JP Gladu pointed out, their perspectives on ESG issues, particularly resource development, have been misunderstood for generations. While deeply respectful of the land, Indigenous communities are not opposed to development; they have a clear, time-honed understanding of what is responsible and what is not.
Today, these communities are bringing their knowledge systems to the forefront, establishing unique practices that can complement Western approaches to critical matters like resource development and economic reconciliation. To navigate complex ESG decisions, Gladu encouraged Western organizations to partner with Indigenous communities, not only to foster inclusivity but also to learn from their long-standing, proven practices.
“Indigenous people are finally coming to the forefront, and our knowledge systems and our aspirations are starting to be co-developed alongside other companies in the country,” said Gladu.
3. Speak less, listen more
In traditional North American boardrooms, there’s often a belief that the loudest voice is the one that leads. However, panelists were quick to dispel this notion, emphasizing that true leadership is not about dominating the conversation, it’s about actively listening to others – specifically in polarizing issues.
"The creator gave us two ears and one mouth for a reason: listen much more than you speak," said Gladu.
This principle was echoed recently during an active debate in Ivey’s pioneering ESG-in-Action course, where Branzei highlighted that participants learned the most when they stayed respectfully quiet, keeping an open mind so they can hear the opposite perspectives others brought to the table. Her fellow panelists agreed, stressing the need to create a safe space where individuals can openly share their values in ways that, over time, foster deeper learning, build trust, and strengthen relationships.
4. Check your ego at the door
Confidence in your brand and mission is vital for navigating polarizing issues, but overconfidence can easily lead to rigidity and stifle fresh perspectives. History repeatedly shows that hubris – excessive pride and arrogance – often precedes downfall. And this timeless lesson holds true in modern leadership. Panelists emphasized that leaders who balance confidence with openness not only foster personal growth and learning, but also signal their adaptability and willingness to listen to diverse viewpoints – critical traits for addressing sensitive topics in a timely and responsible manner.
“If you are arrogant enough to believe you don’t need feedback, then you are not going to be productive in a dialogue or even seek a dialogue to begin with,” said Fulton.
5. Own your shortcomings
In today’s climate, where “cancel culture” and social shaming are pervasive, many firms are wary of admitting failure, fearing the potential fallout. However, panelists emphasized that the greater risk often lies in not being transparent.
Fulton illustrated this point with a real-world example involving an animal welfare non-governmental organization (NGO) and Popeye’s Chicken. While companies are often apprehensive about engaging with NGOs, RBI, Popeye’s parent company, found success by coming to the table and being transparent with them: both about the progress made and the few aspects that had not yet been met. This honesty and openness fostered constructive feedback from the NGO. While Fulton wasn’t suggesting companies publicize their shortcomings, his message was clear: be honest and willing to engage, or risk facing harsher scrutiny.
He said: “…being silent will get you attacked; and, for the love of God, lying will get you attacked. So, just try honesty and engagement.”
6. Prioritize impact, and deliver on your priorities
While leaders are no strangers to prioritization, today’s diverse and competing demands have made it more challenging – and more critical – than ever. Panelists emphasized that leaders must be “ruthless” in setting priorities, acknowledging that it’s impossible to address – or be – everything at once. Instead, companies should focus on key priorities aligned with their mission and ensure they deliver.
“You have to pick priorities. And you have to do them well,” said Fulton.
Once priorities are selected, they need to be backed by a coherent strategy – not just words on paper, but a plan that the business can rally behind, keep front and center in discussions, measure consistently, and report on regularly. This approach helps businesses remain steadfast and tackle major issues effectively, building credibility and trust.
“If you’re seen as a ping-pong organization, you’re going to have a very hard time to meet your goal because you don’t know your strategy anymore,” said Gladu
7. Stay true to your character
Leadership, while rewarding, is never easy. Leaders must constantly navigate complex tensions: balancing regulatory compliance with operational efficiency, shareholder demands with stakeholder needs, reputation with risk management, and short-term financials with long-term ESG goals. So how do leaders manage this balancing act? By staying true to their character and purpose.
Highlighting the leading pedagogy of Ivey’s Ian O. Ihnatowycz Institute for Leadership, Branzei emphasized that today’s leaders must understand, balance, and apply their leader character facets – such as judgment, courage, integrity, and accountability – in order to successfully navigate the “minefield” of ESG. Character, she explained, is key to managing multiple stakeholders and facilitating conversations that drive system-wide change.
Building on this, Branzei challenged the traditional view of trade-offs, where gains in one area mean losses in another—like profit versus purpose. Instead, she advocated for “both/and” thinking, where tensions become opportunities to unlock new possibilities and create a more hopeful future.
“Leaders’ purpose, honed through tensions between character facets (e.g., courage and humility, accountability and justice), often reveals novel pathways to profitability,” said Branzei.
Sparked by these insights? Hear more from Fulton, Gladu, Branzei, and Vera in their full panel discussion, The Leadership Challenge: Tackling tradeoffs and tensions for a sustainable future, found on Ivey’s YouTube channel: https://youtu.be/wJzgEMVFzxU .
