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The “S” in ESG: Social Responsibility Starts Within the Organization

The “S” in ESG: Social Responsibility Starts Within the Organization

By Danijel Koletić, CEO of Apriori World.

At the beginning of this month, I became a Board Member of the Global Alliance for Public Relations and Communication Management, the world’s largest organization bringing together professionals in the field of communication. This appointment followed an initiative I launched as Secretary General of WICMI through the Rome Declaration on Green Communication Responsibility, a document that provides global guidelines for responsible practices among communication departments, professionals, consultants and agencies.

I was also appointed as a team leader with the responsibility of raising awareness of the importance of environmental, social and governance factors, better known as ESG: Environmental, Social and Governance.

ESG began as a framework for assessing investment risks. Today, it represents much more. It has become an integral part of modern business, regulatory requirements and the way we evaluate an organization’s responsibility towards the environment and society.

However, ESG should not be reduced to the content of an annual report.

This is particularly true for its social pillar, the “S” in ESG, which I would like to focus on in this article.

The social pillar of ESG is about how an organization treats its employees, customers, suppliers and the communities in which it operates. These relationships have a direct impact on reputation and trust, yet they are sometimes not discussed enough, even within organizations themselves.

That is why I would like to highlight several areas that every management team, as well as every communication professional, should consider.

  • Investing in the community

Supporting local projects, corporate philanthropy, humanitarian initiatives and volunteering are not simply activities designed to build a positive image. They represent a tangible contribution to the communities in which organizations operate.

Organizations can take this a step further. Why not establish an internal volunteering group? Why not identify employees who are already members of local associations or initiatives and give them an opportunity to share their knowledge and experience with colleagues?

Management should lead by example.

Many companies already provide significant support to local projects. This cooperation is particularly important in smaller communities, where larger organizations can have a substantial impact on quality of life, development and the long term sustainability of the local community.

Social responsibility does not begin with a report. It begins where an organization operates every day.

  • Customer relationships also mean responsibility for their safety

Protecting personal data and customer privacy has become one of the key elements of responsible business.

We witness new forms of online fraud and cyberattacks almost every day, targeting both organizations and individuals. For this reason, cybersecurity can no longer be treated solely as an IT department issue.

Management must follow emerging trends and risks, continuously assess the level of protection within the organization and request clear information from suppliers about the security of the products and services they provide.

The quality of products and services offered to customers is equally important.

All of this must be supported by transparent communication. Customer trust takes time to build but can quickly disappear when an organization fails to communicate openly when a problem occurs.

  • Diversity and inclusion must become part of everyday business

Europe is facing labour shortages, demographic changes and an increasing need to employ people from different countries and cultural backgrounds.

Diversity and inclusion can therefore no longer remain simply desirable values written in corporate documents.

Organizations should provide equal opportunities to employees regardless of gender, age, nationality or other personal characteristics. But inclusion does not end with recruitment.

If, for example, an organization employs a significant number of people from Thailand, why not introduce other employees to their culture, customs and way of life? At the same time, before starting their new roles, international employees should be introduced to the local culture, customs and values of the organization they are joining.

Integration should be a two way process.

At a time of organizational transformation and significant generational differences, the ability to understand and embrace diversity can become one of an organization’s greatest strengths.

  • Human rights and working conditions should never be a matter of compromise

Human rights and working conditions have been discussed for decades, yet this remains an area where significant differences still exist between organizations, industries and different parts of the world.

Workplace safety should be a fundamental principle of responsible business. Organizations must also ensure respect for human rights and the prohibition of forced and child labour throughout their entire supply chain.

Responsibility does not end at the doors of an organization’s own office or factory.

Compensation is another topic that deserves open discussion. Salary structures should be clearly and transparently defined and linked to knowledge, experience, responsibility and individual contribution.

In a previous article, I wrote about the differences between Generations X, Y and Z and the generations that are now entering the labour market. Younger generations communicate their expectations more openly, including expectations related to salaries, working conditions and career development opportunities. Organizations need to understand and adapt to these expectations while clearly communicating the criteria by which knowledge, experience and responsibility are valued.

Are we communicating enough about what we already do?

The social pillar of ESG is not a single activity, one project or several pages in an annual report.

It is reflected in how an organization treats its employees, how well it protects its customers, how it selects and works with suppliers, how it understands diversity and what it contributes to the communities in which it operates.

This is precisely why communication professionals have a particular responsibility. Their role is not only to communicate what an organization is doing, but also to help identify where there is room for more responsible practices, greater transparency and stronger relationships with people.

I believe everyone reading this article can find at least one starting point for reflecting on their own organization.

Do we really know what we are doing when it comes to the social pillar of ESG? Do our employees know? And perhaps most importantly, are we communicating it clearly and transparently enough?

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