THE CORPORATE SOCIAL IMPACT, A TREND REINFORCED BY THE CRISIS

Unfortunately, Covid has caused many economic sectors to suffer and will suffer for the coming months and years. Only a few, including technology and health, seem to be able to emerge reinforced from this harsh reality. But there is a trend that is transversal to all sectors that is reinforced by Covid: The Social Business Impact.

Did you know a year ago what ESG, GRI or SASB stood for? Did you know that the SDGs, in addition to being 17, have specific goals and indicators? Have you ever heard of Larry Fink and his annual letters to CEOs? Did you know what a BCorp company was? Did you care about your company's materiality analysis?

Look ahead. Do you think that Black Rock and other investors are going to be less demanding in reporting the impact of the companies in which they invest? Is the measurement of the impact generated by companies going to be less objective than today? Are environmental and social commitments going to be secondary? Aren't boards of directors going to have to keep up to date with these developments? Or that business purpose is not going to be measured and compared between competitors?

The Journey of Corporate Social Impact it is accelerating and as is often the case, when it seemed that the answers to this paradigm shift had already been identified, the questions have changed again.

Strategic in management committees

In the coming months we will see rankings and benchmarks of large companies worldwide and nationally describing with public information the actions in terms of sustainability, social commitment and governance of these companies considering all their interest groups. A couple of years ago this was not important nor was it on the radar of management committees, but today it is increasingly strategic.

There are companies that saw this trend coming, that are ahead and are already taking advantage of the impact to strengthen the core of their business. But the vast majority are beginning to be aware of their deficiencies in the face of this new variable that they must incorporate into their operational and strategic decisions.

Where to start or where to continue? Every company is at a unique moment in this journey of business impact, but almost all of them may be interested in these reflections.

Are your company's environmental and social activities organized? Is there a single document, dashboard or platform that allows you to see everything that is being done? Are these actions being monitored? Do you have KPIs and improvement plans?

For 43% of companies, this is an urgent issue

There is a world of opportunities ahead of us. A sea of questions that companies, today more than ever, are asking themselves to face the challenges that the crisis and the new reality have already brought to the table of managers around the world.

According to the 2020 Zeno Strength of Purpose report, 9 out of 10 consumers analyzed in 8 countries, from the United States, Canada, the United Kingdom, France, India or Malaysia, among others, say that they reward companies that generate a positive impact in the world. They buy the products of these brands 4 times more, support them in difficult times up to 6 times more, recommend them 4.5 times more and trust the brand 4 times more.

The market rewards purposeful companies and punishes those that don't. That is already part of the new business paradigm. And that's why, for 43% of companies, corporate responsibility and sustainability policies have become an urgent issue. And among the big ones, one in two says it's a priority, according to the Impact Hub's “Impact of Covid-19 on Organizations Survey”.

Now, as never before, what is recommended has become necessary and what is expected is urgent. Priorities are changing. Find out how we can help you with the Business Social Impact at Transcendent!