ESG's Power Play - Looking at the Social Impact in Business

Author: Angela Lyon, Associate, Impakt IQ

ESG, the talk of the town! Acronyms have become the universal language, and each article leaves me wishing for a quick guide at the end.

But fear not, let's break it down. ESG (Environmental, Social, and Governance) reporting isn't just a trend; it's a powerful tool for assessing a company's practices in sustainability and ethics. It's not just about identifying risks and opportunities; it's a game-changer in the world of business management, stakeholder expectations and compliance. Stakeholders are leveraging ESG criteria to inform their decisions on level of engagement with companies.

Now, let's focus on the "Social" side of ESG, particularly within the workplace. It seems like common sense, right? We all go through extensive training on anti-harassment, safety compliance, DEI, and sensitivity, fostering a team effort to build a thriving culture. But here's the kicker – do employers and employees truly grasp the significance of these topics? Do they realize their influential roles in creating a successful team culture? Imagine being at the top but completely unaware of your company's culture. While financials and forecasts have their reports, how do you measure your internal reputation without being on the front lines?

Your employees, the powerhouse of marketing, spend about a third of their lives at work – around 90,000 hours - actively participating in the culture. They're not just talking within the organization; they're sharing their true feelings outside. The hard truth is that Social applies both downstream (pertaining to internal HR practices) and upstream (relating to external elements). And here's the bottom line: reputation carries a financial impact. Companies facing backlash for poor labor conditions, harassment claims, and toxic culture know this firsthand. 

Herein lies the power play. Businesses must shift from a 2-dimensional strategy to a holistic 3-dimensional approach. Embracing a 3D holistic perspective provides valuable insights into the company culture, allowing for accurate measurement and understanding of interconnectedness, as well as identifying key material issues to mitigate risk. In simpler terms, 2D offers data to address symptoms, whereas 3D helps unearth root causes. Without a 3D perspective of your company, the underlying issues remain concealed.

Enter Impakt IQ's Sustainable Impact Measurement System (SIM) – not just a tool, but a next-generation holistic business intelligence tool aligned with global leading ESG standards to help all companies measure and manage their sustainable impacts, a win-win for people, the planet, and business profitability. It expertly pinpoints risks and opportunities for value creation, meticulously assessing their impacts on financial performance and reputation. As ESG regulations gain prominence, accountability is on the horizon. ESG reporting lets companies showcase specific ESG-related reports alongside their financials, offering a comprehensive view of the organization's health. This ensures that the commitment to a sustainable and ethical workplace is more than just a checkbox – it's a tangible part of a company's identity. 

With Impakt IQ, you're not just getting data; you're getting a compass for leaders – helping you navigate and manage what matters most. Seize the opportunity to build resilient, future-proof businesses that leave a lasting positive impact.

Impakt IQ - your impact and sustainability journey starts here. To learn more about Impakt IQ reach out to me at angela@impaktiq.com.