Social Responsibility as a foundation for Social Energy

Welcome to our weekly insight on releasing the Social Energy in your organisation. Each week we will explore one of the characteristics of Social Energy and how it impacts the performance of organisations.

This week we are exploring the concept of Social Responsibility.??For an organisation to release its underlying “Social Energy” (defined as the ability of people and teams to perform meaningful and impactful work), there first needs to be a foundational level of organisational health.??This comes from the attention and respect that is paid to humans within the workplace, recognising their needs and the value they bring.??At a basic level, this means meeting regulations and “doing no substantial harm”, but if this is all you do then you certainly won’t have an energised organisation.

Let’s look at three areas where it is essential to pay real attention to create a solid base and to start releasing Social Energy.

Fair and Equitable Treatment

Diversity, Equity and Inclusion (DE&I) is thankfully now being seen as more than a check-box exercise in many organisations. In addition to being written into law, the value that effective DE&I approaches bring is increasingly being recognised. 2019 research from McKinsey found that organisations with more diverse executive teams were 25% more likely to have above-average profitability.?

The exchange of value between employee and employer also needs to be fair and equitable.??Not only do organisations need to meet minimum wage standards, but they will also increasingly be expected to pay attention to the value given to everyone in their supply chains, not just their direct employees.?

Another critical aspect of a sustainable organisation is the need to ensure that employees have a voice in defining their own future and that of the organisation.??Gallup research suggests that highly engaged teams have 21% greater levels of profitability. The Gallup Q12 Meta-Analysis also indicated a strong correlation between employee voice and reduced employee turnover.

Psychological Safety

Psychological safety in organisations, evidenced by factors such as a willingness to discuss difficult issues, an absence of threatening behaviour or a respect for ethical behaviour, is a major influencer of performance and sits at the heart of the concept of “Social Energy”.??If you work in an environment where you feel you can contribute without fear, and you are positively encouraged to contribute then your level of engagement and your emotional commitment will increase.??One organisation working with Executive Core in the United States on psychological safety reported “less than 7% regrettable loss, the highest profitability in the entire company, and the happiest customers.”??2021 research by Mckinsey found that the most important driver of psychological safety in teams is a positive team climate, “in which team members value one another’s contributions, care about one another’s well-being, and have input into how the team carries out its work”.?

Physical and Social Safety

In addition to creating psychological safety, organisations have a social responsibility to create a physically safe environment in which to work, whether it is in an office or factory, or increasingly in remote working environments. This is already a well-established area with many Environmental< Health & Safety (EHS) rules in place.??The shift to more sustainable ways of working is also being recognised in this space. For example, in the UK the Institution of Occupational Safety and Health (IOSH) refers to this as the “Second Wave of Sustainability”.?

Social protection is also a critical factor in creating a basis for Social Energy.??However, this is particularly challenging as new forms of work and value exchange emerge.??The rise of the gig-economy and zero-hours contracts mean that many workers now fall between the gaps of social protection.??Legislation is coming in this space so now is the time to be prepared.??In February 2023 the EU High-Level Group on Social Protection and the Welfare State presented recommendations for a more equitable approach to social protection across all types of workers.

Social Responsibility as a basis for Social Energy

The ambition to create a world where people are treated equitably and feel protected psychologically, physically and socially is not just the right thing to do.??It is also the basis of creating sustainable, thriving organisations.??

Let’s continue the conversation on releasing Social Energy in your organisation.

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