There is no doubt that it has never been more important for business leaders and companies to be clear about who they are and what they stand for. Your values, ESG credentials, and philanthropy are key to building a purpose-driven culture and attracting the best talent.
It's no longer just about money. Demonstrating that you have a robust ESG (environmental, social and governance) purpose, whether by achieving B Corp status or through diversity and inclusion policies, is now essential when it comes to attracting and retaining talent. is.
Nearly six in 10 (58 percent) U.S. workers cite respect, health benefits, and work-life balance as their most important motivators, according to the 2022 Argyle Leger Trust Report. Only 42 percent said salary was a priority.
If some reports are to be believed, monthly salary packets may become a thing of the past. A study into the future of work with Virgin Media O2 Business recently predicted the end of paychecks and the rise of microtransactions, or small but frequent online transactions.
How ESG became a central board topic
The term ESG may only have really gained traction in the last 20 years or so, but as The Economist recently reported, it's become part of American culture. According to a study by data firm AlphaSense published in the Wall Street Journal, U.S. executives mentioned ESG and similar topics, including sustainability and DEI, 170 times during earnings calls in the first quarter of 2018. It has been shown that By the first quarter of 2022, that number had reached 170. Up to 942.
In the United States and Canada, eight in 10 employees say it is important that their company's values align with their own, and three-quarters (75%) say their employer supports the good of society. Employers have a responsibility to communicate clearly. ESG principles.
These principles should permeate every part of your business, from recruitment to HR strategy, including hybrid working, technology, and benefits. Some companies, including Microsoft, Facebook, and productivity app developer Doist, have hired chief hybrid officers and chief remote officers as part of their ESG strategies. Your values need to be clear to your stakeholders, employees, potential talent, and the next generation coming up.
Sustainability matters
Sustainability is important and drives consumer decision-making and employee loyalty not only in the US and Western Europe, but also in India, China, Saudi Arabia and beyond.
Companies and brands must demonstrate that social issues matter to them if they want to compete in global markets. This was evident in Kantar's Global BrandZ report, which combines ratings from investment research firm MSCI (ESG) and Kantar's consumer perception scores based on four key areas: employees, environment, society and supply chain. However, only 13 of the world's most famous brands received four- and five-star ratings, with IBM, Zara and Microsoft leading the pack for green values.
Beware of greenwashing
Employees are becoming increasingly savvy about how companies are trying to talk about social issues.
But Wall Street's top regulator, the Securities and Exchange Commission (SEC), has vowed to crack down on “greenwashing” and other deceptive or misleading marketing practices by U.S. investment funds. It's not enough just to talk about it.
Starting in 2021, the SEC will also focus on prosecuting ESG-related fraud and “greenwashing,” conducting enforcement actions and collecting fines.
There is no doubt that earning B Corp certification goes some way to strengthening your credibility as an organization and is a rigorous and thorough process that every company goes through, but it is still a great way to support your talent. You need to consider what you are doing. Giving to charity is great, but how do you take care of the people in your organization and what are you providing for the people who want to work for you?
From the CEO to the CFO to the chief sustainability officer (CSO) to the chief people officer (CPO), everyone should be involved in driving and investing in their organization's ESG credentials. This is part of his EVP and should be central to not only attracting top talent, but everyone who works in the business.
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