HR’s Role in Championing Social Value: Creating Sustainable and Inclusive Workplaces
Hello, forward-thinking leaders and HR enthusiasts! Let’s dive into the crucial role of HR in driving environmental, social, and governance (ESG) goals and creating social value.
Imagine this: a dry cleaning store offering free suit cleaning and pressing for anyone unemployed needing to attend an interview. Nearby, a café provides free coffee and breakfast for job seekers heading to interviews. The local newspaper even features an ad from a taxi company offering free transport to interviews in areas not covered by public transport.
These aren’t big corporate chains but small independent businesses making a real impact. Despite their modest resources, they support their community, even if it means taking a hit to their profits. This got me thinking: can communities set a culture where values work? And if so, what role can HR play in fostering this culture within organisations?
Do Communities Set a Culture for Valuing Work?
In communities that value employment deeply, everyone — from companies and church groups to sports teams and social clubs — actively supports others in finding work. This proactive attitude towards employment fosters a sense of purpose and community solidarity.
In South East London, where I live, there’s a strong culture of community support and work ethic. Similarly, I’ve noticed the same commitment to fostering employment and community well-being during my travels to various European cities. These areas often have low crime rates, minimal graffiti, and well-maintained public amenities. Homes and apartments with well-tended gardens indicate civic pride, and residents are courteous to strangers. These observations suggest a correlation between valuing work and fostering a respectful, orderly community.
HR Leading the Charge on ESG and Social Impact
Today, there’s a growing emphasis on ESG goals—not just for external stakeholders but also for employees and job seekers. People want to work for forward-thinking companies committed to making a positive impact. This trend has thrust HR into a pivotal role, communicating employees’ perspectives on sustainability to employers and vice versa.
With the rise of ESG principles, companies are reshaping how they present themselves to the public. Employees are now evaluating potential employers based on their ESG values. This shift has redefined HR’s role, positioning it at the forefront of developing the social aspects of these principles, such as diversity, equity, and inclusion (DEI) and sustainable practices.
Adapting HR to a Rapidly Changing World
The rise of ESG principles and stakeholder capitalism has caused a sea change in how companies present their goals to the public. Consumers are not the only ones looking to support businesses with admirable sustainability and social impact agendas. Employees and job seekers also make career decisions based on employers’ ESG values. They want to work for organisations that are forward-thinking and committed to sustainability.
This shift has prompted a flip in how HR has traditionally been viewed. Previously, HR departments primarily evaluated talent to determine whether they were a good fit for the company; now, the company evaluates the talent to determine whether they are consistent with their values. Consequently, HR has become pivotal in communicating a corporate social and sustainability agenda that will appeal to a new generation of potential employees.
HR as the Vehicle for Systemic Change
The surging importance of these principles has necessitated changes in how some HR departments operate. In some companies, DEI, social impact, and sustainability agendas operated out of different departments. A structural rethink placed these agendas under the HR umbrella. This new responsibility involves not just big-picture idealising but also granular examination of how to advance sustainability, such as studying the energy efficiency of company buildings.
Historically, the responsibility for sustainability often fell to a chief sustainability officer. However, these positions haven’t always had significant influence over corporate processes, leading to a “check-the-box” approach to sustainability initiatives. These issues have been elevated to the C-suite, tying into important considerations around employee satisfaction, retention, and recruitment. Employees don’t want to see their employers “greenwashing” or making insincere sustainability commitments.
Here, HR departments can lead the organisation of companies around these values. Because of their focus on people, HR can be an integrating force across all departments, creating the systemic change needed to reinvigorate a business for a new era of stakeholder commitments.
Supporting Economic Health Beyond the Payroll
Is it in corporations' best interest to ensure the economic health of the communities where their offices or plants are located? Should corporations support the working population beyond their payroll? Should HR consider this part of its remit?
The examples mentioned highlight the potential for businesses to play a crucial role in community support. By extending their care beyond employees to job seekers in the community, companies can foster a healthier, more resilient local economy. This, in turn, can create a more stable and supportive environment for everyone, including their employees.
HR could spearhead initiatives encouraging companies to engage with and support their local communities. This could involve partnerships with local businesses to offer services to job seekers, sponsoring community job fairs, or providing resources for career development. By doing so, companies contribute to the community’s economic health, build goodwill, and strengthen their corporate reputation.
New Considerations for HR Leaders in the Search for Talent
The COVID-19 pandemic significantly altered many people’s work/life balance and workplace dynamics. Workplace burnout is becoming increasingly common as we navigate societal disruptions and cultural transformations. HR has a vital mission to help employees through this unprecedented period and foster honesty and authenticity in workplace relationships.
HR leaders must develop these values in themselves and foster them among employees. As mediators of the new workplace dynamics, HR can ensure that company executives understand the evolving landscape and respond accordingly. It’s about allowing people to show up with their vulnerabilities, which can create stronger bonds and build a culture of trust.
Conclusion
In today’s rapidly changing world, organisations must embrace social responsibility, not just as a corporate checkbox but as an integral part of their strategy. By fostering a culture that values work, supporting local communities, and leading the charge on ESG principles, HR can drive systemic change that benefits everyone. Building resilience through strategic talent management, a robust organisational culture, and a commitment to sustainability is not optional; it’s essential.
Let’s transform how we think about corporate responsibility and community support. The time to act is now. Are you ready to make a difference and future-proof your organisation? Let’s get started!
I’d love to hear your thoughts on this. How can HR further integrate social responsibility into corporate culture, and what steps can companies take to support their communities more effectively? Let’s discuss and share ideas to make a positive impact.
Are you seeking guidance for ESG, compliance, organisational development, performance management, or employee engagement?
Let’s open a conversation: karl@winchr.uk
Follow me on LinkedIn. Let’s talk about it. My DMs are open!
Karl Wood is a global HR and employment professional with an impeccable record of delivering HR solutions for industry-leading firms. Known for his characteristic creativity, Karl champions ideas that promote growth, profit, and a positive organisational identity.
