Is sustainability just a buzzword, or are companies actually trying to make a positive change?Sustainability is becoming more important in the corporate world, with companies coming under scrutiny if they are not doing enough to become a more inclusive and responsible company. This is because there is more focus on a company’s CSR and ESG.
What is CSR (Corporate Social Responsibility)?
CSR looks at how companies make an impact on society
- It can include the economy, the environment, and people in general
- Companies that are actively looking at CSR will do more for their local communities and try to make themselves accountable to their stakeholders
Is sustainability just a marketing trend?
Companies are spending so much time looking as though they’re doing a lot for the environment rather than actually making a difference that it’s been given a name – greenwashing
- Big companies have been caught making bold “green” claims in order to keep up with competitors
- Some countries are cracking down on these claims
- Unfortunately, this issue runs right down into even small businesses
- The Greens Claim Code was introduced, warning even the smallest companies
How can you tell if a company is greenwashing?
Use vague language and consistently release press articles about the great work they’re doing, but not really doing anything to back up these claims
- Companies who use a lot of jargon and talking scientifically are usually doing so to confuse the audience and make them seem like they’re doing complicated work
- They are usually also not very transparent and hide key bits of information
What’s the difference between CSR and ESG?
CSR is a type of business model that companies can implement, which is completely self-regulated, but helps them make a concerted effort to help society and the environment.
- Many companies include a CSR model as it can increase employee morale, attract better talent and improve the company’s brand overall.
- ESG is a set of standards that a company is judged on – like a predetermined set of criteria.
Benefits of sustainability in business
Being known as a sustainable and socially responsible company is generally good for your brand reputation overall, not just with talent.
- You become more attractive to investors and open up more financial opportunities
- Talent is hard to come by, and companies who are seen as “greener” have an edge.
