ESG
Prepare yourself for some business-speak bingo . If you are familiar with phrases ‘ profit with purpose ’ and ‘ do good by doing well ’, then you will no doubt also be au fait with ‘ social impact ’.
Social impact refers to the positive influence a company ’ s socially responsible practices and policies have on employees , society and the environment .
The S in ESG , Social covers all the ways companies interact with their employees and the communities in which they operate , from prioritising employee wellbeing to championing DEI , from supporting social causes to developing community initiatives , including Corporate Social Responsibility ( CSR ).
A central topic for organisations in recent years , more companies have moved to business models that incorporate CSR and other Social practices into their plans and metrics .
And much like environmental impact , social impact needs to be positive , measurable , and reported .
So how can it be measured accurately , and how can it possibly be quantified and qualified while avoiding accusations of ‘ washing ’ in its many forms ?
Rajeev Peshawaria is the CEO of Temasek Holdings ’ non-profit Stewardship Asia Centre in Singapore and Founder President of the Leadership Energy Consulting ( LEC ) Company in Seattle . Previously , he was Chief Learning Officer at The Coca-Cola Company and Morgan Stanley , while also holding senior positions at American Express , HSBC and Goldman Sachs . He has also recently published the book Sustainable Sustainability – Why ESG Is Not Enough .
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