S – the human aspect in the ESG implementation
Today's societies speak more loudly about generational responsibility than at any time in history.
Sustainable development, although not something new due to the Corporate Sustainability Reporting Directive (CSRD) introduced at the beginning of 2023, is becoming a reason to rethink the strategies and practices used in companies in ESG. While environmental (E) or governance (G) are no longer as worrying as they were not so long ago, the social dimension (S) is becoming a significant challenge for management.
S, i.e. society, is human capital, defined as: “a body of knowledge, skills, health and vital energy contained in each person and in society as a whole, determining the ability to work, to adapt to changes in the environment and the ability to create new solutions”. Human capital is not only the “S” part of ESG – it also has a decisive impact on environmental indicators, i.e. those related to corporate governance.
According to Manpower Group’s 2023 Trend Report, 78% of organizations already have or are developing ESG goals and related sustainability strategies, but only 6% say they have the talent needed to achieve them in their teams. At the same time, a global ESG survey conducted back in 2019 by BNP Paribas showed that as many as 46 percent of surveyed investors consider “S” to be the most difficult to analyze and embed in strategies. And this can be applied both to internal activities related to the way employees are treated, but also to external activities, taking into account the impact of the activity on customers, partners and other stakeholders.
Why does this happen? Research conducted by the Gallup Institute (State of the Global Workplace:2023 Report) shows that only 13% of employees of European companies are engaged in work (in Poland it is 14%), and 72% are people experiencing the so-called “Workplace”. quiet quitting. The rest are people who are actively working to change employers.
Most of us are sure that sports passes, training, or fruit Thursdays are not what determine an employee’s commitment to work or retention in our company. Mistakes made by today’s organizations include:
· they think about employees, forgetting about managers,
· benefits are introduced “on an island basis”,
· do not take into account generational differences,
· set goals, are misaligned with the organization, or do not set them,
· they don’t measure the effects,
· do not appoint persons responsible for the achievement
of the objectives,
They use social-, psycho- or well-being washing, i.e. lies to show that the company supports the social dimension, which is not confirmed in reality or is only partially confirmed.
At the same time, we all agree that the achievement of the sustainability goals will only be possible with properly prepared and committed managers and employees.
Therefore, the questions that the Management Boards of companies are trying to answer today are:
How to increase people’s engagement at work?
How do you retain talent?
In order to meet this challenge, it is necessary to conduct a multi-criteria analysis and multidirectional actions adapted to the specifics of the company and closely related to its mission, vision, goals and values. As we already know, island actions are not effective, so systemic solutions integrating project methods, change management and human capital are needed, which will be proposed at the level of the strategy and then operationalised accordingly.
The areas in which we operate are:
- Social strategies and participation in their operationalization,
- surveys of employee and managerial satisfaction and preferences,
- Psychological assistance and managerial and employee coaching,
- Trainings and workshops in i.e.: burnout, resilience, mental health,
stress management, leadership of the future, motivation,
communication, etc.
How do we work?
- We will perform an analysis of the current situation in the area of
social impact and the practices used in your company, - We will conduct a survey of employee satisfaction and preferences
of managerial staff, - Together with your team, we will develop or verify a social strategy
tailored to the specifics of your organization. - We will propose a way to measure the effects,
- We will plan actions that will help you achieve your goals,
- We will align processes, procedures and policies,
- We will train your people.
If you need only selected elements of the process for your company, we will adapt to your expectations. In our work, we use extensive experience in the areas of project management and change management, so you can be sure that we operate systemically and comprehensively.
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