Social sustainability: a business necessity
Social frictions such as inequality, digital literacy, rising energy prices, and aging population lead to risks for businesses. Risks which businesses are increasingly experiencing. Local and international social tensions can result in lower labor productivity, issues in the supply chain, lawsuits, strikes, and reputational damage. Organizations that prioritize people and the positive impact of their activities, services, and products on current and future generations contribute to social progress and create business opportunities. Social sustainability is the key to future-proof business operations.
Less risks, more opportunities
Social sustainability within the business world is about increasing the positive impact and reducing the negative impact on the organization's immediate surroundings. Potential consequences such as value destruction highlight the risks of inaction. Social sustainability offers a tremendous opportunity for companies to create a more just future for all stakeholders, including employees, the communities in which they operate, those in their broader value chain, and consumers.
Those who can solve societal frictions create business opportunities
Social sustainability requires an action-oriented approach. Not just words, but actions. It concerns the immediate world around us and is often more local in nature than many CEOs think. It also involves the people you impact in your immediate surroundings, and especially the people you impact with products and services you introduce into society. Are these products and services inclusive, safe, and accessible?
Local frictions
Examples of social sustainability topics on a local level and the relevance for businesses.
‘With attention to social sustainability, a company creates new opportunities and mitigates risks. It leads to value so that humanity can thrive.’
Wendy van Tol |Partner, Sustainability Transformation Lead
Case study: Unilever's social sustainability strategy
Looking for a practical step-by-step approach to make social sustainability tangible and action-oriented? Discover how Unilever defines and implements its strategy in the field of social impact.
Business opportunities of social sustainability
Social sustainability requires making conscious choices. How can I, as a company, mitigate the negative impact on my surroundings while also adding value and creating positive impact? This requires a business strategy.
It requires business leaders to have a balanced long-term vision of social progress. A vision that, on the one hand, leads to better risk management and a reduction in business costs, and on the other hand, to more growth and more trust in the business operations. This may sound obvious, but it presents a significant challenge.
Action-oriented approach: 'Sustainable Business Transformation Framework'
Applying a sustainable social business transformation requires a helpful framework with clear steps. The Business Commission to Tackle Inequality (BCTI), developed the 'Sustainable Business Transformation Framework', in collaboration with PwC. This framework provides a practical step-by-step approach for formulating and implementing a social sustainability strategy. Additionally, the framework helps in dealing with challenges that inevitably arise during the journey.
Discuss the opportunities of social sustainability for your organisation further?
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