Editing Business ethics (section)

====Board leadership====
The board of a company can decide to lower executive compensation by a given percentage, and give the percentage of compensation to a specific cause. This is an effort which can only be implemented from the top, as it will affect the compensation of all executives in the company. In Alcoa, an aluminum company based in the US, "1/5th of executive cash compensation is tied to safety, diversity, and environmental stewardship, which includes greenhouse gas emission reductions and energy efficiency" (Best Practices). This is not usually the case for most companies, where we see the board take a uniform step towards the environment, social, and governance issues. This is only the case for companies that are directly linked to utilities, energy, or material industries, something which Alcoa as an aluminum company, falls in line with. Instead, formal committees focused on the environment, social, and governance issues are more usually seen in governance committees and audit committees, rather than the board of directors. "According to research analysis done by Pearl Meyer in support of the NACD 2017 Director Compensation Report shows that among 1,400 public companies reviewed, only slightly more than five percent of boards have a designated committee to address ESG issues." (How compensation can).<ref>{{Cite web|url=https://www.pearlmeyer.com/knowledge-share/article/how-compensation-can-support-improved-environmental-and-social-governance|title=How Compensation Can Support Improved Environmental and Social Governance|date=2017-03-30|website=Pearl Meyer|language=en|access-date=2019-08-12}}</ref><ref name="theguardian.com"/>