Our latest research shows how leading companies are applying a social perspective to strengthen their businesses while creating value for their employees, customers, suppliers, communities, and society at large.
new york, June 27, 2023 /PRNewswire/ — Expectations about the role of business in society are changing dramatically. The environmental impact of business is of great importance to many corporate stakeholders. But today, many more purely social concerns are coming strongly to the fore. And CEOs are paying close attention.
A Bain & Company survey of nearly 300 CEOs worldwide found that 85% of business leaders consider social issues to be an “urgent” concern for their companies. When asked about the primary role of business, 60% said it was either “producing positive outcomes for society” or “balancing the needs of all stakeholders.”
“Companies that lead on social issues such as DEI and socially responsible supply chain practices don’t think of these efforts solely as risk mitigation,” he said. Kartik Venkataraman, a partner in Bain’s Diversity, Equity and Inclusion practice. “In fact, the opposite is true. Leaders in the sector are finding ways to link social initiatives directly to the commercial logic of business, opening up new opportunities for value creation by better serving all stakeholders. They see a symbiotic relationship between stakeholders: the concepts of “doing well” and “doing good.” ”
One of the most influential stakeholder groups in driving change is customers. Customers have revealed that they are concerned about the social impact of their brand and product choices. According to Bain research, half of consumers around the world are more likely to buy from a brand that is committed to combating racism, and more than half are more likely to buy from a brand that is committed to human rights. is the answer.Regionally, his 82% of consumers Europe, middle eastand Africa 86% of consumers are more likely to recommend a brand after learning that it supports a social cause. latin america It states that it is extremely important for companies to contribute to the improvement of society. In the US, one-third of Gen Z consumers say they will boycott brands with poor labor practices.
Executives surveyed by Bain said social performance drives business outcomes in a variety of ways. Executives of companies that are leading on social issues self-assess that their revenue and EBIT growth rates are higher than their peers that lag on social issues. They also perceived their companies to be doing better in attracting customers, talent, and financing.
“When it comes to addressing social issues, the challenge for many business owners is to convert action on these issues into economically sustainable business outcomes,” said Jenny Davis Pecoudo, partner and global head of the firm at Bain. It’s about finding out exactly how to change it.” Practicing sustainability and responsibility. “The ‘S’ in ESG is made up of a wide range of issues and varies from organization to organization. He recommends starting by focusing on his four key stakeholder groups: communities, customers, employees, and suppliers, and identifying actions that will both address social issues. Contribute to these groups and drive results for the business. ”
Bain’s research examines four areas of opportunity to link social action to economically sustainable business performance.
- Improving the social and economic conditions of local communities. The communities in which companies operate have become increasingly important stakeholders for businesses. Some companies are looking at these stakeholders through a social lens and finding ways to significantly improve conditions in their communities in ways that improve business performance.
- Identify new sources of customer value. Applying a social lens to your customers and markets can reveal opportunities to create value for entirely new customer segments, including underserved markets.
- Investing in current and future employees. Given the challenges companies currently face in attracting and retaining the right talent, investing in employee learning and development will help companies move from being “talent acquirers” to “talent acquirers.” You can move on to becoming a creator.
- Strengthen supply chain resilience by building relationships with socially responsible suppliers. By examining their supply chains through a social lens, companies can work effectively with suppliers to ensure fair and equitable practices, while increasing end-to-end supply chain resilience. .
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About Bain & Company
Bain & Company is a global consulting firm that helps the world’s most ambitious change makers define their future.
In 65 cities across 40 countries, we work with clients as one team with a shared ambition to achieve extraordinary results, outperform the competition and redefine industries. We complement our customized and integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more lasting results.Our 10-year commitment to invest more than 1 billion dollars In our pro bono services, we bring our talent, expertise, and insight to organizations addressing today’s most pressing issues such as education, racial equity, social justice, economic development, and the environment. We have a Platinum rating from EcoVadis, the leading environmental, social and ethical performance assessment platform for global supply chains, ranking us in the top 1% of all companies. Since our founding in 1973, we have measured our success by the success of our clients and are proud of our industry-leading client advocacy.
Source Bain & Company