ESG and Business: Building a Better Future

Beth Dean 11.21.23
2023-11-21 Nextep blog - ESG

We’ve talked recently about the importance of sustainability in business. Let’s take it a step further and look at ESG, or Environmental, Social, and Governance

The Impact of ESG on Companies

Environmental (E)

Companies that focus on their environmental impact are making a positive change. They reduce their carbon footprint, use clean energy, and find innovative ways to protect our planet. This focus helps the environment and saves money in the long run by cutting waste and energy costs.

Social (S)

The “S” in ESG encourages businesses to treat people well, including fair wages, diverse and inclusive workplaces, and giving back to communities. Companies prioritizing social responsibility attract top talent, improve employee morale, and gain loyal customers.

Governance (G)

Good governance means a company is well-run, transparent, and accountable. It reduces the risk of scandals or unethical behavior. Strong organization can help a business build trust with investors and customers, making it a more attractive choice for partnerships and investments.

What Business Leaders Should Do

Now that we know how ESG impacts companies, let’s explore what business leaders can do to embrace it:

  1. Set Clear Goals: Business leaders should define ESG goals and integrate them into their company’s mission and values. This sends a powerful message to employees, investors, and customers about their commitment to positive change.
  2. Measure and Report: Regularly assess your company’s ESG performance and report the results transparently. Use metrics to track progress and make improvements where necessary. This transparency builds trust and credibility.
  3. Engage Stakeholders: Listen to your employees, customers, investors, and the communities you operate in. Their input can guide your efforts and help you understand where you can make the most significant impact.
  4. Innovate and Adapt: Embrace innovation to find sustainable solutions. Whether adopting new technologies, rethinking supply chains, or finding creative ways to support social causes, innovation can drive positive change.
  5. Collaborate: Partner with other companies, organizations, and governments to amplify your efforts. Collaboration can lead to a more significant impact and foster a culture of shared responsibility.
  6. Educate and Empower Employees: Educate your workforce about ESG and empower them to contribute to your company’s ESG goals. Employees who feel connected to these initiatives become champions of positive change.

ESG is not just about doing good; it’s about doing good business. ESG can be your compass on the journey to a better world and thriving businesses.


YOU MIGHT ALSO BE INTERESTED IN…

2023-11-07 Nextep blog - CEOs and sustainability

Why are CEOs worried about sustainability, and should you be worried, too?


 

Also on Nextep

When Addiction Strikes at Work The issue of addiction in the workplace presents a complex challenge for both employers and employees. The Americans with Disabilities Act (ADA) protects qualified individuals with disabilities, but active addiction itself isn’t necessarily covered. Here’s a breakdown of rights and responsibilities: Employee Rights Under the ADA Generally Not Covered: The […]
Read more
What is Considered “Reasonable”? What happens when an employee with a disability needs an adjustment to perform their job effectively? This is where reasonable accommodations come in. However, the question often arises: what exactly is considered “reasonable” under the Americans with Disabilities Act (ADA)? Striking a Balance The key is to find a balance between […]
Read more
It’s time for an ADA refresher! The Americans with Disabilities Act (ADA) is a cornerstone of civil rights legislation, ensuring equal employment opportunities for people with disabilities. As an employer, understanding your obligations under the ADA is crucial. Here’s a breakdown of the key points: What qualifies as a disability? The ADA defines a person […]
Read more
Forced to listen? Imagine this: Your boss calls a mandatory meeting. Instead of discussing work tasks, they spend the time telling you why you should support a political candidate or a particular religious view. That’s a captive audience meeting, and it’s becoming a hot-button issue. A captive audience meeting is a mandatory work meeting where […]
Read more
At some point during the election cycle, you may encounter employees wanting to display political propaganda at work.  This can range from flags and posters to social media posts and even conversations, and it can create a tense and uncomfortable atmosphere for colleagues with differing viewpoints. So, how do you maintain a respectful workplace while […]
Read more
As a presidential election year unfolds, employers must navigate the complex landscape of voting leave laws to uphold employees’ rights while ensuring compliance with state regulations. While federal law does not mandate time off to vote, many states have enacted specific provisions. Here’s what employers need to know to navigate this terrain effectively. Understanding State […]
Read more
An Employer’s Guide to Politics in the Workplace The current political climate can be divisive, and tension can easily spill over into the workplace. When employees hold vastly different political views, it can lead to arguments, hurt feelings, and a fractured work environment. So, what’s an employer’s responsibility when it comes to politics in the […]
Read more
Unpacking the Buzzword You’ve likely heard the term “quiet quitting,” conjuring images of disengaged workers coasting through their jobs. But before we jump on the bandwagon of criticism, let’s take a closer look at what this phenomenon actually means. At its core, quiet quitting describes employees fulfilling their job requirements without going the extra mile. […]
Read more
A No-Nonsense Guide for Business Leaders The work landscape is shifting, and your business might be left behind if you’re still operating with a traditional mindset. Deloitte’s 2023 Global Human Capital Trends report offers valuable insights for navigating this changing terrain. Here are the key takeaways you need to know about the future of your […]
Read more
In today’s evolving work environment, employee engagement and productivity have become critical priorities for businesses. McKinsey’s research sheds light on this topic by identifying six distinct employee personas, each exhibiting varying levels of satisfaction, engagement, and performance. But the most striking revelation? Over half the workforce falls into two stark categories: building value or destroying […]
Read more
How to handle insurance during leave of absence Employee leaves of absence from work raise questions, especially about health benefits. Who shoulders the insurance premiums during the leave? Let’s untangle this knot one thread at a time. Paid Leave: Business as Usual Paid leaves are straightforward. Simply maintain regular benefit deductions from their paychecks as […]
Read more
March 1, 2024 is Employee Appreciation Day! Every year, businesses across the globe take a moment to pause and honor the backbone of their success: their employees. Employee Appreciation Day, usually celebrated on the first Friday of March, is a chance to express sincere gratitude and show these hardworking individuals how much they mean.  Appreciating […]
Read more

Download Our App


Download the Nextep Mobile App in Apple iOS or Google Play