Changing workforce dynamics as well as increased pressure from internal and external stakeholders are forcing organisations to focus on the social pillar of ESG (Environmental, Social and Governance) as an organisational success metric more than ever before.
With the social aspects of ESG foregrounding a business’s impact on its employees, its customers, and the community, it’s clear that safety leaders are uniquely placed to address social factors within their organisations. And yet, their exact role in building fair and trustworthy environments for all stakeholders remains ill-defined.
In this article, I offer my insights on how the health and safety function can work towards and complement ESG efforts, and discuss how leading from the heart can be a catalyst for real change that creates stronger and more successful organisations built around happy, healthy communities.
What’s behind the rise of the Social pillar of ESG
Today’s consumer demands immense social change and a more equitable world, influencing a greater emphasis on the social justice concerns underpinning ESG’s social pillar.
Workers in numerous sectors world-wide have also seen their bargaining power increase during the pandemic, due to depleted workforces and a rise in flexible working structures, causing a further push towards human-centred workplaces and systems.
Despite its impact on almost every aspect of an organisation, however, the social pillar remains a frequently underdeveloped element of ESG strategy. Standardised metrics to record nuanced social progress outside of physical safety are far less abundant than in the environmental and governance aspects, and for many, real social change—especially rectifying historical equity and labour injustices—can be difficult to envision, though such change is urgent.
Many individuals don’t want to change because they’re used to another way, even if that other way is harder and unjust. Company cultures centred around tradition and rigid hierarchies can further slow progress.
Sometimes, big change only comes about when the consumer or worker demands it—when social values shift, placing reputations on the line. However, small steps can and should be taken far before that point.