FOR PUBLIC COMPANIES, THE CONCEPT OF ESG (ENVIRONMENTAL, SOCIAL, AND GOVERNANCE) WILL ENCOURAGE THEM to look more externally. Large investors, such as Blackrock, are also serving as catalysts in ESG disclosure and planning. Intense rigor and due diligence need to be applied to external partnerships that may link reputations and involve financial support. Elements to consider in the diligence process include the leadership of any external organization, understanding the mission/vision, and examining the value system. These external partnerships are critical and need the oversight of the CEO/C-suite because of the risk to corporate reputation if these relations are not well thought out. Going forward, pharma companies need to be more aligned and visible with external partnerships.
AL ALTOMARI is chairman and CEO of Agile Therapeutics and a member of the company’s board of directors.