Taking a Strategic Approach to the 'S' in ESG: Creating a Social Impact Strategy

NORTHAMPTON, MA / ACCESSWIRE / May 17, 2024 / In recent years, the concept of sustainability has transcended a solely environmental focus to encompass a much broader set of considerations. While the ‘E' in ESG has received significant attention, effort, and investment from regulators and organizations alike, the ‘S' pillar, which pertains to social sustainability and social impact, is equally essential for organizations to address.

With the release of the UN Sustainable Development Goals and increased regulatory accountability when it comes to ESG - particularly as it relates to social issues such as Human Rights - we also see shifting priorities and increased scrutiny from investors, customers, talent, and community stakeholders. This is influencing the extent to which organizations are expected to report and act on their social sustainability activities and social impact.

Estimating the scale of change

Social sustainability is about developing prosperous organizations while aiming to ensure that current and future generations can thrive; live healthy lives; and be free of inequity and oppression. For an organization, this involves proactively identifying and managing business impacts on employees, workers in the value chain, customers, and communities. It encompasses a company's commitment and activities related to issues such as human rights, DEI, labor practices, and community engagement, among others.

Social impact goes hand in hand with social sustainability but refers specifically to the positive and negative impact of an organization's activities on stakeholders and society at large. Social impact involves measuring and understanding the tangible impacts of an organization's activities on people.

By embracing social sustainability, organizations can attract business partners and investors; enhance employee morale and engagement; drive innovation to unlock market opportunities; and even bolster financial performance. Integrating social impact into business strategies not only advances ESG agendas but also contributes to the well-being of society and the overall sustainability of the business.

Social impact strategy

Managing the impact of an organization on society is a complex yet important task. When it comes to making sure that your organization's social sustainability activities are having the desired impact and are aligned with broader business goals, a strategic and intentional approach is required. This is where a social impact strategy comes in.