As organizations seek to demonstrate their commitment to sustainability and meet stakeholder demands, the focus has been primarily on environmental impact, or the E in ESG. This includes reducing carbon emissions, waste and the use of scarce resources, while promoting circularity through recycled and reclaimed materials. However, it is important not to overlook the social dimension of ESG, as a company’s impact on people can create risks and opportunities that impact a company’s reputation and long-term success and sustainability. With the latest expected EU regulations, the social aspects of business operations will also become more clear and require attention.1.
Social sustainability refers to an organization’s ability to meet the needs of its stakeholders, such as employees, customers, suppliers, and local communities, while ensuring that social justice, equity, and fundamental rights are upheld. . Social issues such as human rights, community impact, diversity, equity, and inclusion are important to companies as they can impact customer trust and loyalty, investor confidence, and employee satisfaction. It can have a significant impact on commercial success. Therefore, it is essential for organizations to prioritize social sustainability alongside environmental sustainability in their ESG efforts if they are to contribute to a more sustainable future.
While this article will primarily focus on the external impact that organizations have on society, the next article, Sustainable Work, will focus on how leaders can improve social equity within their organizations, including diversity, equity, and inclusion. We’ll focus more on the steps you can take to build. and employee happiness. Of course, this is not as clear a distinction as some would like, as employees have a vested interest in the external impact of their employer’s organization on society and the community.