Putting the ‘S’ in ESG: Why HR Directors are key to Social Sustainability

As businesses around the world increasingly recognise the importance of sustainability, and regulation broadens to include an increasing proportion of them, the concept of Environmental, Social, and Governance (ESG) is gaining significant traction.

ESG takes a holistic approach to measuring a company’s impact on the environment, society, and its governance practices. While the environmental and governance aspects have received considerable attention, the social dimension is often overlooked. However, HR directors, with their expertise in people management and business culture, are uniquely positioned to play a vital role in driving social sustainability within organisations. In this article, I’ll explore why HR directors are key to social sustainability and how their involvement can create a positive impact on both business and society.?

Please note: each of these could (and probably will) be an article in their own right, and this is a very simple introduction?

The significance of social sustainability?

Social sustainability refers to an organisation’s ability to operate in a manner that promotes social well-being, inclusivity, diversity, and fair treatment of all stakeholders. It encompasses a wide range of aspects, including employee welfare, human rights, labour practices, community engagement, and ethical supply chains. Achieving social sustainability not only benefits employees and communities but also enhances a company’s reputation, attracts top talent, and fosters long-term profitability.??

Social sustainability affects everyone within an organisation and its impact on the societies in which it operates, from addressing bias and discrimination in hiring practices to social initiatives supporting local communities. It can be everything from tiny everyday details to headline corporate initiatives on a global scale. HR directors, as strategic leaders responsible for managing human capital, are at the forefront of driving these initiatives.?

Embedding a culture of inclusivity and diversity?

HR directors are instrumental in fostering a culture that values inclusivity and diversity . By promoting equal opportunities, fair hiring practices, and policies that support diverse and equitable workforces, they contribute to social sustainability. They can implement diversity and inclusion training programs, unconscious bias education, establish affinity groups and employee resource groups, and ensure that company policies and practices are aligned with the principles of fairness and equality.??

In doing so, HR directors create an environment where employees feel respected, valued, and motivated to perform at their best, and create an enhanced talent attraction? and development proposition to ensure broader and fairer hiring practices in the longer term.?

Prioritising employee wellbeing?

It may seem obvious to suggest that social sustainability encompasses the wellbeing of employees, but positive treatment of people starts from within. HR directors play a critical role in designing and implementing initiatives that support the physical, mental, and emotional health of the workforce . They can develop meaningful initiatives which make a tangible difference to employees’ lives, from comprehensive wellness programs to flexible work arrangements and employee assistance programs. Moreover, HR directors can actively promote work-life balance and encourage a healthy organisational culture that prioritises employee wellbeing. When employees feel heard, supported and cared for, they are more likely to be engaged, productive, and loyal, so as well as being an ethical imperative, there is also a very real benefit for productivity and performance.?

Strengthening labour practices?

HR directors are responsible for ensuring that labour practices within the organisation align with international standards and regulations. They can implement fair compensation policies, promote occupational health and safety, and establish grievance mechanisms. HR directors also play a vital role in managing relationships with trade unions and fostering effective dialogue between management and employees. By upholding ethical labour practices, HR directors contribute to social sustainability by protecting workers’ rights and fostering harmonious employee relations.?

Engaging with the community?

Social sustainability extends beyond the workplace and encompasses a company’s relationship with the local community. HR directors can spearhead community engagement initiatives by establishing corporate social responsibility (CSR) programs, volunteering activities, and partnerships with non-profit organisations. By actively participating in community development projects, HR directors contribute to the social well-being of the areas in which their organisations operate. Such efforts strengthen the organisation’s social license to operate and enhance its reputation as a responsible corporate citizen, as well as often having a positive effect within a business, encouraging more people to adopt socially responsible practices themselves.?

Promoting ethical supply chains?

Supply chains have a significant impact on social sustainability and as with any ESG initiative, it’s important to think way beyond the immediate environment. HR directors can collaborate with procurement teams to ensure that suppliers uphold ethical practices, including fair wages, safe working conditions, and respect for human rights. By implementing comprehensive supplier codes of conduct and conducting regular audits, HR directors can promote responsible sourcing and create a ripple effect throughout the supply chain. Such actions contribute to social sustainability by combating forced labour, child labour, and unfair working conditions.?

Social sustainability promotes a fairer and more inclusive world?

To truly embrace the principles of ESG, organisations must recognise the importance of social sustainability and the pivotal role of HR directors in driving positive change.??

More and more organisations are aligning themselves with socially responsible principles and taking a stand against unethical practice. Businesses which fail to address ESG principles risk stakeholder and employee alienation, as well as funding opportunities and reputation enhancement. By prioritising inclusivity, employee well-being, fair labour practices, community engagement, and ethical supply chains, HR directors contribute to a more sustainable and socially responsible future. Their strategic vision and commitment to people management enable businesses to create a positive impact on society while reaping the benefits of an engaged, diverse, and loyal workforce. Embracing social sustainability is not only the right thing to do, but it is also a business imperative for long-term success.?

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The article was written by Vic Foster, People Director