Why ESG in Government Contracting?
The principles of environmental, social, and governance (ESG) represent the best of the classical liberal conservative perspective on corporate social responsibility. These principles focus on ensuring that companies are not just profitable, but also socially responsible. ESG principles align with the philosophies of great leaders such as Benjamin Franklin, George Washington, Thomas Jefferson, and George Carver Washington, who recognized the value of the environment, scientific education, and public works. As Benjamin Franklin once said, “An investment in knowledge pays the best interest” (Franklin, 1758). George Washington believed that “The earth is what we all have in common” (Washington, 1799), while Thomas Jefferson argued that “The earth belongs to the living” (Jefferson, 1789). George Carver Washington emphasized that “The welfare of each is bound up in the welfare of all” (Washington, 1943).
The principles of ESG are becoming increasingly important to both customers and contractors. Customers are demanding more sustainable products and services, while also scrutinizing supply chains for environmental and social concerns. Additionally, there are compliance requirements related to ESG standards, such as reducing greenhouse gas emissions and promoting diversity and inclusion.
The Biden Administration has issued executive orders to address ESG objectives, which aim to promote sustainable practices, tackle climate change, and address environmental justice and equitable environmental protection. These orders are likely to have a significant impact on how government customers and their contractors conduct business.
Government customers and their prime and sub-contractors are increasingly aware of environmental, social, and governance (ESG) issues. These issues impact government customers in several ways, such as increased scrutiny of supply chains, demand for sustainable products and services, and compliance requirements related to ESG standards.
Take a look at the executive orders that intersect with ESG listed on the right hand side of this page.
These executive orders aim to promote sustainable practices, tackle climate change, and address environmental justice and equitable environmental protection. As a result, government customers are likely to demand more sustainable products and services from their suppliers, while suppliers will face increased compliance requirements.
In summary, the principles of ESG represent the best of the classical liberal and conservative perspectives on corporate responsibility. By aligning with the philosophies of great leaders such as Benjamin Franklin, George Washington, Thomas Jefferson, and George Carver Washington, these principles help ensure that companies are not just profitable but also socially responsible. As society increasingly recognizes the importance of sustainability and social responsibility, ESG principles will continue to shape how companies operate and conduct business.