[ad_1]
During his 20-year career in responsible business, it evolved from philanthropy to Corporate Social Responsibility (CSR), now more commonly known as Environmental, Social and Governance (ESG) I’ve seen things
Some might argue that these are all trending buzzwords for the same thing, but I think they’re all subtly different. It’s worth understanding where they come from in order to know where to go in your career. can do.
It all started: charity
When you think of philanthropy, Bill Gates, Warren Buffett, Mackenzie Scott, or similar figures may come to mind. He is an individual who has amassed enormous wealth through his business and is determined to give back some of it to society. What they do form an important part of civil society. Also, many employment opportunities remain through philanthropic efforts (often offered and funded through foundations, trusts and NGOs).
Companies such as Carnegie, Cadbury and Tatas can really trace this concept back to the Victorian era when they had owners who were charitable and interested in giving back to their communities. But this kind of philanthropy is starting to fade in modern times.
Community involvement through CSR
Next was CSR. It has its roots in philanthropy, but is less paternalistic and focuses on how businesses are involved and contribute to the well-being of the communities in which they operate. Companies began to look beyond simply taking care of their employees to benefit themselves. Often the motivation is building a reputation, growing a customer base, or creating a talent pipeline.
The shift from CSR to ESG reframes responsible business practices from building reputation to creating opportunities for business success.
During my time at the BBC, I was involved in many things, including making campus buildings accessible to the community, supporting citizen journalism, organizing employee volunteerism, and ensuring the company was not centrally London-centric. developed a comprehensive CSR initiative.
CSR is an important part of being a responsible company and is often the starting point for many people’s careers. However, the evolution from CSR to ESG brings with it important and gradual changes. The shift from CSR to ESG reframes responsible business practices from building reputation to creating opportunities for business success, including financial rewards, long-term adaptation and market differentiation. This change is also an opportunity for newcomers to jump into their careers.
Applying ESG to every part of the company
Many aspects of CSR and responsible business have become hygiene factors, basic table stakes requirements. You can get called without companies, but there’s no benefit to having them. Growing regulatory demands and awareness among stakeholders such as customers, employees, suppliers, investors and public bodies encourages companies to take action and reduce risk while delivering value to stakeholders, society and the planet. I realized that I needed to look at ways to mitigate it.
According to KPMG’s 2022 Sustainability Report survey, 96% of G250 companies report on sustainability or ESG issues. It is clear that ESG is emerging as a business imperative. ESG takes a holistic approach to doing business. It’s about embedding responsible practices into a company’s strategy, operations, products and culture. We focus not only on minimizing risks, but also on maximizing opportunities. In contrast, CSR is often managed and implemented by a dedicated team and rarely directly impacts a company’s products and services or even business strategy. It focuses primarily on community involvement, the environmental impact of offices and factories, and responsible employment practices.
There is no doubt that something else will replace ESG in the future. I suggest that this should be viewed as a dynamic, iterative process in which change is for the better.
ESG also shows investors and other stakeholders that companies are taking these aspects seriously by measuring them quantitatively, actually changing their business processes, and looking at their entire business through a responsible business lens. inform the person. More simply, ESG is a set of commitments to achieve a company’s purpose.
For example, at HubSpot, we believe purpose is more than a buzzword. It drives all our activities and is central to our ESG activities. Establishing a clear purpose to build a company that future generations will be proud of helps us navigate which initiatives align with our goals, what matters most to our stakeholders, and what we do. It helps ensure that you prioritize where you can have the greatest impact.
More changes are coming and that’s a good thing
Some might think all this is pretty bureaucratic, especially with the tightening of regulations and compliance in many regions, but I see it as an opportunity. This means that wanting to build a career in responsible business is not limited to the ESG sector. You can now pursue careers in ethical marketing, sustainable design, carbon friendly coding, carbon accounting, and even circular economy engineering. ESG is part of everything.
Evolution over the past few years has transformed what was once a small philanthropic or CSR team into a management discipline where responsible business is prioritized across the company. As a result, this expertise is more needed than ever and offers great opportunities for those seeking purpose-driven careers.
However, don’t get too hung up on terminology. There is no doubt that something else will replace ESG in the future. I suggest that this should be viewed as a dynamic, iterative process in which change is for the better.
[ad_2]
Source link
