Corporate Virtue.

• Author: Rock, Robert H.
• Position: LETTER FROM THE CHAIRMAN

In December Directors & Boards held its second annual "Character of the Corporation" forum. Our first forum had examined how boards of directors can balance corporate profits with social purpose by embracing ESG initiatives and programs. This year's forum explored how they can take on the larger responsibilities to their varied stakeholder communities, particularly in the wake of the global pandemic, social-justice unrest, and economic downturn. We again convened an outstanding group of governance thought leaders to discuss the importance and impact of corporate character.

Character embodies the core values and convictions that are etched into a company's DNA, inspiring its societal commitments, environmental responsibilities and moral consciousness. The character of the corporation animates behavior, conveying its core values and expressing its corporate culture to a broad array of stakeholders.

When establishing our nation, America's founders turned to the classical teachings of ancient Greek and Roman philosophers who underscored the critical importance of "virtue" as a core value for individuals, societies and governments. For the classical philosophers, virtue was the essential element of public life, placing public good before private interest. For the Revolutionary generation, virtue was the very essence of character, putting aside personal advantage for the collective benefit of all. Presidents Washington, Adams Jefferson and Madison tried to cultivate virtue in themselves and instill it in the fledgling nation.

Today, the word "virtue" has taken on a less political and more personal definition depicting qualities of integrity, honesty and uprightness, which, in aggregate, constitute high moral character. These qualities are often incorporated into written statements delineating a company's guiding principles...