Ultimately, companies exist to make money. If they don’t, they cannot provide the jobs and social benefits necessary for human survival. However, in today’s world, social responsibility and profitability go hand in hand.
Raising Capital
Social factors increasingly influence the availability of capital. A company that is insensitive to (or is unaware of) the social impacts of their business decisions will not receive the ESG scores necessary to attract investors or progress toward an IPO.
Sales & Market Share
More and more consumers are considering social factors in their purchase decsions. Over time, the market will reward companies that minimize their exposure to social issues. Innovative solutions to social issues may also uncover revenue-generating opportunities in new markets, products, or service lines.
Human Resources
Addressing equity, diversity, safety, and quality of life issues can improve a company’s ability to attract and retain talented employees and boost productivity through increased internal morale and employee engagement.
Product Liability
Proper measures to protect public health and safety in delivering products and services avoids risks such as recalls, penalties, fines, and loss of brand value.
Socially sustainability is a worthwhile investment, both in terms of commercial success and the wellbeing of the people and communities it impacts.