Andrew Marsh, award-winning North East and Northumberland Vistage chair, NED for numerous businesses and charities; and successful entrepreneur, spends his days helping business leaders achieve goals and find opportunity. He has a career steeped in technology, business change and venture capital, as well as working with boards to achieve their best. Here, Andrew focuses on the social in ESG, an important topic for business leaders and boards to have on their agenda.
“Last month’s article on ESG became a conversation about Environment… so this month I wanted to give Social the attention it deserves too. And next month, I will dedicate my article to Governance.
“Social in ESG refers to the social impact that actions in business have, and some larger organisations in the North East are demonstrating how to do this really well by having set up foundations. Social impact is probably the hardest of the three interdependent pillars to map and the toughest to measure on effectiveness especially with the current cost of living crisis.
“Greggs (the baker) successfully runs The Greggs Foundation, a grant-making charity which aims to build stronger, healthier communities in the areas they operate. It focusses on addressing poverty, inequality, hunger and supporting local community organisations. Our regional football teams including Middlesbrough, Sunderland and Newcastle United Foundation are also ticking the social box, as independent registered charities using the power of football to connect, motivate and inspire people in our region.
“But what exactly does that mean to a smaller organisation? And how can they do their bit?
“Immediate impact is created by looking at company CSR (corporate social responsibility). Donations to the right charities or sponsorships of events, sports teams or to make a difference to people’s lives in the company’s employ or in the business’s community, make a positive social impact.
“Obviously, people are the most important asset in any business, and they sit at the core of ESG’s ‘social’. When developing an ESG strategy to change your business impact on society, it’s crucial to consider stakeholders’ interests, from investors to employees, to customers, to the local economy.
“As a leader, you should look at how you respond to dealing with trends, your workforce and the relevant legislation. This is a great place to build social standards foundations from, that sit alongside strong environment and governance policies.
“By looking at social impact standards as a company, you are identifying it’s important that better ones are met and that you aim to be socially sustainable in the future. Until the pandemic, Black Lives Matter and #MeToo movements, not many social standards were on the radar for many companies compared to now, so it is good to see the trend changing quickly.
“It’s imperative that commitments to improving
social factors are impactful internally and
externally in policies and procedures, products
and services that affect not only employees
but also broader society, customers, clients
and suppliers. In fact, the implementation of social standards often helps organisations understand their customer base, employees and stakeholders better, allowing new opportunities to be presented. They also help give a competitive advantage in recruitment or investment, especially if the social standards you set are rooted in the voice of your consumers.
“SAGE is particularly good at this, and regularly publishes impactful research that helps to influence and inform policy, practice and the public. In 2019, they launched an effort to improve the methods used to measure the impact of social and behavioral science (SBS) – beyond citations – and ultimately, bring sustained attention to the company’s value.
“Good social impact involves looking at workplace benefits and safety, including limiting access to or total avoidance of harmful substances and products. Diversity, Engagement and Inclusion are also an integral part of ESG, as I have written about previously. Dr Joanna Berry recently hosted a Vistage webinar on demystifying the business case for gender diversity as part of DEI. The acknowledgement of biases caused by gender, with solutions in place, goes a long way towards a positive social impact, creating opportunities, equality and positivity towards everyone irrespective of gender. Covering how gender equality both plays into and harms social impact depending on delivery, it’s worth a watch and can be found at vimeo.com/748813103.
“Social focus also includes ensuring that anti-bias issues are under control; that human rights are fully extended, career development is accessible and that there is competent and legislative HR support available to all. That provision of a HR service does not just extend to large businesses. SME’s and small family run businesses have an obligation too, and with platforms like Vitality and Pirkx now available there is no need for any employer to not look after employees. These digital platforms give health, wellbeing and happiness benefits to a workforce of any size.
“In my six Vistage groups, I’ve been holding sessions with Lucy James as key speaker, focusing on recruitment as a strategy. Her 15-years experience in board level recruitment has seen her over hauling complex recruitment environments, positioning her well to discuss how taking control of recruitment gives you a competitive edge in ensuring social elements are well impacted by taking on the right people. It is important you employ and recruit people in the correct way, so there is an understanding of the social journey of the company before they join. Ensuring inductions and terms & conditions reflect that too, is important, as we what offer colleagues is a huge part of good ESG.
“Social impact goes beyond the workplace.
Community development, human welfare and impact on the environment all sit within the ‘s’ in ESG, showing how all three pillars interweave, when done correctly. The goals are long-term, such as those that The Greggs Foundation has pinpointed as well as access to education, gender equality, clean water, sanitation, affordable energy and decent work environments.
“Ensuring you are doing all you can use a local supply chain, by giving back to your own local community, by being environmentally savvy and by being a caring employer are not easy steps, but you will reap the rewards. Simple steps like paying a little about the bench mark pay grade or offering extra holidays can all be a good indicator. Robust measurements in place to monitor your journey are essential, to take what you are doing beyond lip service, knowing you are truly making a difference.
“It’s important to close this article with a reminder that none of implementing ESG, DEI or any of the acronyms that are current buzz words is about simply talking a good game. The real action is about making a personal and business commitment, about being present, doing what you say you will do, and most of all keeping it simple so it can be effective.”