Unfortunately, Covid has caused many economic sectors to suffer and will suffer in the coming months and years. Only a few, including the technology and health sectors, seem to be able to emerge stronger from this harsh reality. But there is a trend that cuts across all sectors that is being reinforced by Covid: Corporate Social 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 targets and indicators? Had you heard of Larry Fink and his annual letters to CEOs? Did you know what a BCorp company was? Did your company's materiality analysis matter to you?
Looking ahead, do you think that Black Rock and other investors will be less demanding in reporting the impact of the companies they invest in? Will the measurement of the impact that companies generate be less objective than it is today? Will environmental and social commitments be secondary? Will boards not have to keep up with these developments? Or will corporate purpose not be measured and compared among competitors?
The journey of corporate social impact is accelerating and, as often happens, when it seemed that the answers to this paradigm shift had been identified, the questions have changed again.
Strategic in steering committees
In the coming months we will see rankings and benchmarks of large global and national companies describing with public information the performance in terms of sustainability, social commitment and governance of these companies considering all their stakeholders. A couple of years ago this was not important or on the radar of management committees, but today it is increasingly strategic.
There are companies that saw this trend coming, that are ahead of the curve and are already taking advantage of the impact to strengthen the core of their business. But the vast majority are starting to become aware of their shortcomings 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 point in this journey of business impact, but almost all may be interested in these reflections.
Are your company's environmental and social activities organised? Is there a single document, dashboard or platform that allows you to see what is being done? Are these actions being monitored? Do you have KPIs and improvement plans?
For a 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 in order to face the challenges that the crisis and the new reality have already put on the table of managers around the world.
According to the 2020 Zeno Strength of Purpose report, 9 out of 10 consumers surveyed in 8 countries, from the US, Canada, the UK, France, India and Malaysia, among others, say they reward companies that make a positive impact on 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 companies with purpose and punishes those without. This is now part of the new business paradigm. And that is why, for 43% of companies, corporate responsibility and sustainability policies have become an urgent issue. And among large companies, one in two say it is a priority, according to the Impact Hub's "Covid-19 Impact Survey on Organisations".
Now, as never before, what is recommended has become necessary and what is planned has become urgent. Priorities are changing. Find out how we can help you with the Corporate Social Impact at Transcendent!