“S”: into the spotlight

“S”: into the spotlight

Of the ESG triad, it would be fair to say that up until now, Social has taken a back seat in the growing conversation about a responsible approach to business. Environmental issues were thrust into global consciousness more powerfully than ever before in 2019, with thanks to Greta Thunberg, among others. Good Governance in organisations – from having accountable executive directors in place to paying taxes where required – is relatively uncomplicated to understand and verify. The Social dimension, on the other hand, which focuses on an organisation’s relationship with its employees or members, has been given relatively less airtime.

Not any more. The coronavirus pandemic has firmly thrust the Social aspects of running a business responsibly into the spotlight. The issues which we have been hearing more and more about during the pandemic have included job security, wage support, employee engagement, flexible working arrangements and protecting the physical and mental well-being of employees. Maybe once these topics were tomorrow’s problem, but very suddenly, the ability of employers to meet their Social responsibilities have been put to the test.

As ever, the largest corporations have provided the headlines and those who have been perceived to have fallen foul of desirable Social practices have been tried by the press. For example, we have seen retailers to airlines lambasted for compromising employee health for profits and for management teams looking after themselves at the expense of their employees.

Importantly, the strength of opinion and perceived importance of the Social contract between employer and employee will only grow from here, not least because nearly every single one of us is experiencing disruption to our normal working pattern and work/life balance right now.

How employees are treated and supported during this hugely challenging period will be an important factor in deciding how competitive a business will be on the other side of this crisis. This will apply just as much to the smallest businesses as it does to the largest corporations. Ultimately, investors and consumers will vote with their wallets, and workers with their time. Those organisations which have acted responsibly and are able to communicate their Social ethics and achievements will be best placed to win investment, new business and increase their value in today’s world.

ESGmark rewards organisations who can demonstrate that they act responsibly towards their employees, as well as towards the environment and broader stakeholders. We help our member organisations to grow by communicating their achievements with the wider world. We look forward to working with those organisations who are supporting their employees and partners through this incredibly challenging time, and helping them to become long-term winners in their industries.