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 ten (58%) U.S. workers cite respect, health benefits, and work-life balance as their most important motivators, but only 42% prioritize pay. ing. 2022 Argyle Leger Reliability Report.
If some reports are to be believed, monthly salary packets may become a thing of the past.of Research on the future of work The co-owners of Virgin Media O2 Business recently predicted the end of paychecks and the rise of micropayments, or small but frequent online transactions.
How ESG became a central board topic
The term ESG may have only really gained traction in the last 20 years, but according to The Economist, it is indeed gaining traction. recently reported, becomes 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.
and 8 out of 10 employees In the United States and Canada, three-quarters (75%) say it is important that a company’s values align with their own, and three-quarters (75%) expect their employer to be a force for good in society. As such, the onus is on employers to clearly communicate ESG principles.
These principles should permeate every part of your business, from recruitment to HR strategy, including hybrid working, technology, and benefits.Including some companies microsoft, Facebook and productivity app maker Doist have hired chief hybrid officers and/or 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 obvious Kantar’s Global BrandZ Reportcombines ratings from investment research firm MSCI (ESG) and Kantar’s consumer perception scores based on four key areas: employees, environment, society and supply chain. Only 13 left The world’s most famous brands received four- and five-star ratings, with IBM, Zara and Microsoft leading the way for their green values.
Beware of greenwashing
Employees are becoming increasingly savvy about how companies are trying to talk about social issues.
But what about Wall Street’s top regulator, the Securities and Exchange Commission (SEC)? I swear Crack down on “greenwashing” and other deceptive or misleading marketing practices by U.S. investment funds, but talking about it isn’t enough.
Starting in 2021, the SEC also: focused on prosecution Due to ESG-related fraud and “greenwashing”, enforcement action and impose a fine.
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 CFO, Chief Sustainability Officers (CSOs) and Chief Human Resources Officers (CPOs) should be involved in promoting and investing in their organizations’ ESG credentials. This is part of her EVP and should be central to not only attracting top talent, but everyone who works in the business.