It is hard to understand what other sustainability areas businesses should prioritize to contribute positively. Priorities for the SDGs vary for different regions, even countries, it also vary depending on the sector we are approaching. This is why empowering business to respond and implement change for their material topics is essential. Global buy-in and movement to commit to sustainability and concrete transformation is needed as well but it is a different process.
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Looking at it from an investor’s perspective, it would be highly relevant to see corporates with complete understanding, commitment and disclosure related to ‘social impact and risks through the value chains’ where they operate. This has always been appreciated but Covid-19 has certainly made the need for change even more pronounced with supply chain breakdowns leading to different social implications across it.
While the position of each corporate within the chain and the dynamics of its own business vary, and understandably companies will primarily focus on the social risks surrounding their immediate operations as well as their own employees (eg. communities where they operate or are based on etc), the social role of corporates in a (still) globalized world with lengthy and complex supply chains must not be dismissed.
While not advocating that each corporate should take social responsibility (or full accountability) for the chain where they operate, those corporates should be able to identify and disclose those social risks, and more importantly work with their partners through the chain and drive/push them to take action within their own operations, and then those partners will push for change with their respective partners, suppliers, etc.
Sort of a corporate chain reaction for social impact. The requirement for corporates to disclose some of those social risks would make it all more transparent and measurable, while putting the pressure on their counterparts to act. Ultimately, corporates should examine every part of their businesses, activities, relationships and supply chain using social impact lens.
We are seeing companies in parts of the food and consumer chain where they are now requiring their suppliers to provide transparency etc, but we also need more decisive actions on social impact, following models and actions around eating health or sustainably grown. Social impact tracking.
A case can be made that corporates that fully grasp those social aspects ‘backwards and forwards’ within their chain can not only manage their supply, manufacturing and sales risks better, but are also in a position to make sounder business and investment decisions in markets and chains which are sustainably viable in the long run.
For long-term investors especially, that makes those corporates more attractive and potentially more valuable on a risk adjusted basis. That prospect in itself helps align the need for social responsibility with the financial demands of shareholders, which is another topic for another panel but should not be treated as mutually exclusive.
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@MeeganSc started a good list of social transformations that companies can contribute to:
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And Mark, who or what funded the study? Suspect I would be on very safe ground to say that somewhere taxes, philanthropic donations and green investment funds might have been generated through business activities!!!
referencing the Behind the Brands comments-- does that mean it’s up to consumers to generate shareholder value around social impact?
Let me be a little bold : ) This misses the point. The one transformation we are being called to action on is gross inequalities. And we do this by addressing the most serious risks to the most vulnerable people that are too often endemic to how business gets done. There is nothing basic about this. It is the realm of bold leadership.
In turn, addressing inequalities will certainly maximise the chances that other global systems changes – such as the six set out by the World Benchmarking Alliance including urban, agricultural, digital and energy – will work for all people across current and future generations.
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A3- Place-based action. Seek out co-development opportunities at all levels of society, including within customers’ communities. E.g. community control of (unused) assets (right to buy); supporting small businesses.
Exploring how the business’ core capabilities can increase wellbeing, taking into account how exponential trends (from climate change to rising inequality, automation and the fourth industrial revolution) and how they will significantly reshape civil society’s needs and in turn create opportunities for forward looking innovative companies to meet those new needs.
Targeted and sustainable support to the voluntary and community sector (both capacity-building and in emergencies).
Increasing access to volunteering opportunities, enhancing volunteering efforts, and coordination of local efforts.
Tackling stigma and discrimination.
Public health campaigns (Health Check promotion; community pharmacy; actions to tackle obesity, alcohol, physical activity)
Ending food poverty.
Ending homelessness.
Studies have underlined which SDGs are least prioritized and reported on by companies but does that mean that those Goals should be emphasized? I think what matters most is to maximize positive impact and cancel negative impacts.
Sorry, Hamish, nothing here but academic rigor, I’m afraid, LOL!
A3:
• Reducing gender inequality
• Reducing inequalities
• Protecting various human rights
• Facilitating the sustainability of cities
• Ensuring minority ethnic groups can contribute and advance at a more accelerated rate socially and financially by having meaningful diversity programme. Not just hire them for a fake diversity programme but based on talent and as well equal opportunity for growth developing and contributing.
• The transformation to sustainable economies and the shift away from brown economies
• No poverty
• Climate change
• Rural to urban drift by embracing aspects of inclusive business, leveraging geographical indicators, buying from local producers or situating plants in rural areas, perhaps investing in rural area production where plant location would only drive cost.
• Strengthen value chains
• Taming the growing beast of increased nationalism and the slowdown of international trade
.
Agree @Mario_Maia that because of their work across industries, financial institutions and investors have a helicopter view on the risks & challenges faced across industries. They can be a valuable partner for a brand/business and spot the most “material” issues to focus on.
No I think it is about companies being responsible citizens to serve their communities of interest - all the way from producing farmers to consuming customers. Consumers should aim to spend their money as wisely and socially responsible as possible.
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And who or what paid for the academic’s living costs?
Unfortunately, mostly international students!
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I think part of the challenge is that most corporates are unaware of the huge impacts they have on society up and down their value chains. In the same way humanity is wiping out species without knowing it, so are businesses having huge social impacts without realising it. So a challenge is to surface these impacts and then crucially, help businesses see the material things they can to to create positive impacts. Then report on progress against them.
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As we conclude this written discussion - what would be the one thing you want to ensure is at the top of the World Benchmarking Alliance’s considerations as they more this forward?
Whats the most important thing to consider?
Actually living out and declaring their commitment in their stakeholder relationships, rather than doing it as a tick-box exercise. Having a motivation to do so and enabling it to nurture across the business.
Also bringing social capital clearly into the company agenda, language and culture…
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Having worked in the NGO, public and now private sector, I really believe companies can be a real force for change. If a big organisation makes a social transformation, it can do so at scale. In addition, because of the global and local reach of companies, they can have the power to make changes in the wider ecosystem in which they operate.
In addition, and I think the Covid – 19 situation has highlighted this, the private sector has an enormous role to play in helping support big global challenges and acting as a convener to move forward decisively and collaboratively.
CEOs and senior leaders are being more vocal on social issues be it from climate to water to poverty reduction. The external world from shareholders to stakeholders are interested in their perspectives and their leadership on social topics. Senior leaders are expected to and increasingly want to speak out on social topics and CEOs hold a degree of trust and those who speak up have impact and reach to make change at scale.
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Lean into Inequality as the Core and see that as transformational. The time is now.
a.We should measure the degree to which companies are wired to address their most serious impacts on the most vulnerable.
b.We should focus on rights-based indicators and metrics that tell us about a company’s progress in tackling inequalities.
WBA has already done an excellent job at basing their benchmarks and plans on research and engagement with key stakeholders. It is tricky to select common social indicators regardless of every company’s context but following the UN Guiding Principles and other international norms should provide this basis. Companies need to start reporting on social and human rights aspects as there is a big gap.
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