#BigIdeas2022: 5 big ideas on social impact that will shape and sustain us, together, through time

Emerging from three years’ of predictions (2019, 2020, and 2021), here’s to a year of focus and rejuvenation - as we converge along what matters most: sustaining humanity, through cultivating trust and a connected sense of wellbeing. We have experienced social innovation and impact move from an externality to the mainstream, and I look forward to a day when every organization has a purpose that propels its contribution to societal wellbeing. With that, here are 5 big social impact ideas that are gaining momentum, and that will shape our world for generations to come.?

1) Businesses will be compelled to hold themselves far more accountable for the day-to-day impact that work and livelihoods have on individual, familial, and societal wellbeing - becoming much more intentional about innovating for better employee/stakeholder experiences, in an effort to outcompete.

Arianna Huffington speaks about the growing realization amongst companies regarding the connection between stress, burn out, & mental health; and attrition, the Great Resignation, and productivity.? Although not new, this relationship has particularly come alive as a result of the long lasting global pandemic. — These issues have become strategic priorities for HR departments and the C-suite, Huffington says. Employee expectations have been reset, as they would like better, and companies are facing material impacts to which they must adjust with better benefits, higher wages, stronger growth and retention policies, more meaningful work, and more fulfilling cultures. Management culture / good managers will be key. There also needs to be a deliberate effort to cultivate truly “enlightened”, long term results-based performance metrics. And there is an overarching belief that wellbeing must be cultivated through learning, involving skills that can be taught. The Workforce Vitality Model, created by the Adecco Group Foundation, is one example of a holistic model enabled by policy & practice, culture, environment (including hybrid work), and technology.?

In short, businesses that aim to remain competitive in the long term will innovate to deliver a better “employee life experience”.? For society, wealth redistribution alone is insufficient; we need good jobs and strong employers. It will no longer be mostly about a best place to work list or brand and talent attraction, but more about the actual narratives and substantive innovations behind positive experiences over time that define the character of a given business.?

Business will be compelled to act not only through the recognition of the connection between these human impacts and materiality, but also as a direct function of employee activism. Alain Dehaze, CEO of Adecco, refers to the present phase that we are in now as the “Great Reevaluation”: “It’s a time when people across the world are deeply contemplating what they want to do with their work lives.”? As a result of this, I believe that a new breed of Changemakers will continue to emerge to transform corporate culture for the better. There will be a special relationship between them and a broader diversity, equity, and inclusion (DEI) agenda, further strengthening the link between these vital societal priorities and sustainable business performance.?

Additionally, the public policy landscape is changing with a proliferation of mandatory ESG requirements in various jurisdictions. As a part of this, there is an increasing recognition that businesses are not only accountable to their direct stakeholders - for example, (full time) employees - but their entire value chains (entities with which the company has a direct or indirect, upstream or downstream, business relationship) - with much broader or far-reaching external impacts. An example of recent legislation: “In February 2021 the European Parliament’s Legal Committee adopted a “Draft Directive on Corporate Due Diligence and Corporate Accountability” … calling on the European Union to legally require companies to respect human rights and the environment in their supply chains … requiring companies to monitor, identify, prevent and remedy risks to human rights, the environment and governance in their operations and business relationships – including suppliers and subcontractors.”? Concurrently, we see more gradual activity around the creation of public benefit corporations.?

Finally, impact management metrics are increasingly reflecting the concept of human impacts on business.? In a recent paper, George Serafeim and others looked at employee impact at scale, including wage quality, opportunity, diversity, and differences depending on location to devise a measure of employment impact intensity for an organization. The usage of such metrics will drive the space forward in the coming years - as the lines between work and home continue to blur to encapsulate a more holistic lived experience across individuals in society, globally.? Hubert Joly beautifully speaks of going so far as to assess the heart of a business: “the idea of pursuing a noble purpose, putting people at the center, creating the environment where you can release that human magic, embrace all stakeholders, and treat profit as an outcome.”?

2) Digital infrastructure, co-innovation pilots, and joint analysis will be used in more sophisticated ways than ever before to understand local challenges and conditions, and how they affect societal wellbeing, enabling us to better prepare.

The pandemic has further demonstrated the critical importance of digital infrastructure: “Countries that had existing comprehensive DPI before the pandemic were able to build a coherent, comprehensive and rapid response to the virus.”? And in general, “Digital Public Goods (DPGs) – open source software, open data, open AI models, open standards, and open content that adhere to privacy and other applicable best practices – are a critical tool for building infrastructure in ways that address some of the limitations of solutions that rely on proprietary software.” Apart from related to the pandemic, a specific example includes the use of AI to predict and prepare for extreme climate conditions.?

In his new book, Building the New Economy: Data as Capital,? Alex ‘Sandy’ Pentland talks about Community Capitalism: “Arguing that we need to think about data as a new type of capital, the authors show that the use of data trusts and distributed ledgers can empower people and communities with user-centric data ownership, transparent and accountable algorithms, machine learning fairness principles and methodologies, and secure digital transaction systems,” and highlighting what happens in the absence of a local approach (to supplement the objectives of consistency and universality), I.e. “Inclusive policies – those that help everyone – must be tailored separately for each different community …”

Further, better and more data will empower stakeholders across sectors and industries to manage impact within their business / strategic contexts and understand where they can make unique societal impact, or the additionality of their investments in society.? This includes also the opportunity costs of organizational decisions.? In “Corporate Purpose and Profit”, Alex Edmans, author of Grow the Pie, does an excellent job of illuminating how businesses can focus on creating unique value for society, moving beyond “box-ticking”, transforming culture, and earning trust.? It will be especially interesting to follow the trajectory of specific sectors like technology and healthcare in this regard. The level of innovation brought to market during the pandemic has been phenomenal; however, equitable distribution has been a challenge. ?This, yet again, points to the need for stronger collaboration between governments and businesses across borders to address fundamental human challenges such as vaccine equity; and more opportunities to co-design with communities (i.e. more expansive Circles of Trust). This begins with more equitable access to the underlying digital infrastructure, and enablement of data collection and usage.?The proliferation of ESG / impact management solutions and their roll out is one way to build in and manage toward equity.

3) Climate action - supported by cross-sector collaboration - is catalyzing a sustainability transformation that is rewriting market rules and paving the way for better integration of societal impact (at-large) into core business decisions.?

Companies are facing choices to “disrupt or be disrupted”; to be a leader, they must focus on sustainability and disrupt through making bold strategic choices and commitments, reinventing products / developing new products, rethinking operations, and doubling down on innovative partnerships (as outlined in this Davos agenda piece).? The flood of capital into climate investing is predicted to grow, and an acceleration in solution deployment is anticipated. ?A record $649 billion poured into ESG-focused funds worldwide through Nov. 30, up from the $542 billion and $285 billion that flowed into these funds in 2020 and 2019, respectively, the latest Refinitiv Lipper data shows. ESG funds now account for 10% of worldwide fund assets.? Yet, the additive impact of these funds remains a question mark.? There is also a growing conversation around how the ESG qualifications of C-suite leaders and board members are important to consider or build. At the US government level, for the first time, climate change has been cited as a risk to US economy. And carbon is being cited as a future liability (especially in light of emerging legislation) for companies that don’t adapt swiftly enough to reduce their footprint.?

We will also experience even more scrutiny and action to address greenwashing and other forms of “washing”, leading to greater transparency all around. This includes properly recognizing both the benefits and potential pitfalls of recent standardization and convergence, as Jean Rogers describes.? And this points to the urgency or need yet again, for professionals who understand the practice and discipline of tracking and weighing societal impact into business decision making and not “marketizing” what cannot be “marketized” yet taking a nuanced narratives- & dynamic scenarios-based approaches.? In turn, this further points to the need for companies to have qualified professionals and units integrating impact across core business functions or operations - to work through this increasingly noisy landscape, dubbed by some as the “aggregate confusion”.

A part of this transformation will be a better appreciation of cultural change needed to truly move the needle on climate action - as we continue to overshoot.? Kate Raworth speaks to?a fundamental paradigm shift needed in the economic model we use: markets exist in service or life, and we must balance human needs - across the globe - with planetary boundaries (concept of Doughnut Economics). Raworth’s work is also an instrumental framework for thinking about the impacts of technology on society and how we both incentivize / fund and regulate it, and how it contributes to a broader regenerative economy. At the heart of this journey is a shift in capitalism, as well put by Rebecca Henderson.

Last but not least, it is clear that no CEO or sector can solve these massive global challenges alone, even at the local level and even if the systems change problem is broken down by levers and root causes.-- Cross-sector collaboration is essential and will be driven by topmost leaders getting down to brass tacks and actions.? In Net Positive: How Courageous Companies Thrive by Giving More Than They Take, Paul Polman and coauthor Andrew Winston, argue that to deliver the scale of change and transformation the world so desperately needs, companies must become “net positive” by giving more to the world than they take.? Yet, getting to the holistic thinking that truly reveals the definition of “net positive” in a business context is not easy and nor are shifting near term market boundaries or incentives - and this is where leaders holding other leaders accountable while co-investing in solutions will be pivotal. ?The B2B relationships around societal impact must change toward greater platform-building and collaboration.? COP26 elevated the global agenda, but we need greater urgency around immediate co-investment and collaborative action across sectors - with a strong eye toward vulnerable countries and communities (including accounting for racial diversity, economic diversity, neurodiversity, second chance, and more).-- Asia, in particular, is abundant with natural resources and diversity yet will need the global community to rally, and catalyze the tech and pilots to enable the region to leapfrog. This is another place where global social entrepreneurs working with Corporate Changemakers around the sustainability agenda may be pivotal.

4) Skills-based hiring and career pathway programs will experience unparalleled growth, representing a paradigm shift in global education and on-the-job training.?

It is well known that we are facing a global digital skills gap; some of this can be alleviated with better matching of skills, jobs, and candidates yet not without greater investments by businesses to subsidize, offer, and support more skilling and business training, in an equitable manner. This includes moving away from the amount of significance we place on degrees alone, and helping the credentialing space mature. More roles will also be expected to augment their work using AI, requiring new digital skills.?

This need represents an opportunity for businesses, governments, community actors, and learning providers / educational institutions to work better together to develop career pathways. More diverse digital learning platforms will emerge and converge. This includes addressing supporting candidates in their day-to-day lives empowering them to better access and benefit from skilling and career programs, and enhancing their overall resiliency.?

5) We will experience new movements to drive more capital to women-led ventures and women, in general.

Suzanne Biegel pens the aspirations well, suggesting capital needs to look beyond predominantly white and male deal networks, and need to expand their appetite to invest in diverse business ideas.? Yet, with the emergence of new female business leaders on the scene and a growing vibrant global conversation around gender, I am hopeful that this is the year we’ll see some real change in how women get supported and funded (philanthropy to VC; and in their respective career growth or paths to leadership and equity).??

Momentum is already building; for example, among other leaders, Melissa Bradley recognizes that Black women are the fastest growing segment of entrepreneurs in the US and Latinx businesses are the fastest growing businesses once started. Yet, both groups/the New Majority? are overlooked and underfunded. With 1863 Ventures, she is working to de-risk these companies through training and technical assistance and set them on a successful glide path for fundraising.? Whitney Wolfe Herde of Bumble became the youngest woman to take a company public in the US. Melanie Perkins, CEO of Canva, recently joined the Giving Pledge, alongside Bill & Melinda Gates (who co-founded the pledge with Warren Buffet) to give away a significant portion of her wealth; keen to follow her philanthropic leadership. MacKenzie Scott also signed on to the Giving Pledge in May, and no article this year would be complete without recognizing the magnitude, pace, and thoughtful approach to her giving. Last but not least, another great example to which we can look forward is Leena Nair, as the new CEO of Chanel; she has a demonstrated commitment to diversity and inclusion and impact advocacy and represents another DEI “milestone” in leadership history.?

Further, in parallel with the growing action agenda around DEI, investors are educating themselves more and differently around ESG topics including bias. All of this speaks to the fundamental relationship between awareness-building / education and changed mindsets that ultimately, lead to changed behaviors and actions. Yet, unfortunately, in some countries more than others, there will be a phenomenal uphill battle around equality.

By Shamsia Hassani (Afghan Graffiti Artist)?

Yet, no journey would be complete without changing hearts, leading to a path of greater connectedness and emotional trust. This is beyond business and not impact alone. It’s about purpose, transparency, integrity, responsibility, fairness, connections, comfort, health, happiness, and joy - all of which make humanity whole in a timeless way.?It is about our personal journeys coming together collectively - in deliberate actions - to reshape our world.

Happy new year - going into 2022 with dreams, hopes, and ready for the work and dedication ahead!

Views are my own.— To which impact trend are you looking forward?? What’s the biggest missing puzzle piece that would make societal impact whole?? Would love feedback below. I am also at [email protected].?