Social sustainability is moving up the corporate agenda

Broadening the sustainability approach

% of executives by country who agree with the statement: We are increasingly focusing on the social dimension of ESG (September 2023)

More and more organizations are prioritizing social sustainability as defined by the UN Global Compact. Social sustainability programs identify and manage the impact businesses have on employees, workers at every stage of the supply chain, customers, and surrounding communities.

More than half of executives (56%) claim they are focusing more on the social dimension of environmental, social, and governance (ESG) initiatives. Similarly, 59% of executives report that their organization’s sustainability actions tackle both environmental and social impacts.

63%

of companies recruit and hire people of different gender identities, sexual orientations, races, ethnicities, socio-economic backgrounds, and/or abilities

Embracing social sustainability includes launching initiatives to support a company’s workforce. Virtually all executives (99%) said that their companies are beginning programs that benefit employees.

These include training and upskilling workers on subjects of diversity and inclusion, as 60% of executives reported, or offering mental health support, as 51% of executives are doing. Meanwhile, 65% of executives said that their companies are spearheading programs to help local communities.

% of executives who agree with the statement: We only work with suppliers who pay a living wage (September 2023)

In contrast to their in-house efforts, companies are not effectively supporting workers across the supply chain. The UN Global Compact calls for everyone to receive a living wage, and organizations should be doing their part to uphold this standard. Our data shows that only 38% of executives work exclusively with suppliers that pay a living wage. At the same time, 45% of global consumers expect brands to do so.

42%

of companies make products / services accessible to people with disabilities / health conditions / impairments

40%

of companies make their products / services affordable to local communities

Social sustainability extends to accessibility and affordability. Less than half of executives report they are making their products or services accessible to people with disabilities, health conditions, and other impairments, or affordable to local communities. Companies that adopt advanced inclusive practices are four times as likely to design inclusive products than those that do not.¹ Importantly, in times of economic difficulty, companies that provide more affordable local pricing plans will be met with warm receptions.

_{¹Capgemini Research Institute, “The key to designing inclusive tech: creating diverse and inclusive tech teams,” July 2021}

17%

of executives believe that consumers consider their organization’s sustainability initiatives as greenwashing

33%

of consumers believe that organizations/brands are greenwashing their sustainability initiatives

50%

of Gen Z consumers believe that organizations/brands are greenwashing their sustainability initiatives

CXO Corner

For the CMO

Be transparent

The Chief Marketing Officer must adopt a policy of total transparency, communicating honestly about where the company has been, where it is now, and where it is going. Consumers are becoming increasingly skeptical of perceived instances of greenwashing. Our 2023 data shows that people are becoming more sensitive to this issue due to its prevalence in social media discussions. This means that, even if marketing teams have an admirable goal to generate enthusiasm for sustainability projects, they may end up generating a negative response. They must not be perceived. as over-selling or hyping up undeserving products. About half (51%) of executives surveyed are following external guidelines on sustainability communications.

For the CEO

Match social sustainability with business strategy

It is imperative that the CEO help the company develop a social sustainability strategy that is compatible with the group’s business strategy. This strategy must be comprehensive and support four key groups: employees, customers, supply chain workers, and local communities. Currently, while corporations are taking concrete action for internal employees, they could be doing much more for external workers and local communities. CEOs could consider working with suppliers to include stipulations for a living wage in their contracts, for example. Sustainability frontrunners are currently leading this change by engaging with employees and by developing educational programs and policies in support of local communities.

Download the full report

For the CMO

Be transparent

This means that, even if marketing teams have an admirable goal to generate enthusiasm for sustainability projects, they may end up generating a negative response. They must not be perceived. as over-selling or hyping up undeserving products. About half (51%) of executives surveyed are following external guidelines on sustainability communications.

For the CEO

Match social sustainability with business strategy

CEOs could consider working with suppliers to include stipulations for a living wage in their contracts, for example. Sustainability frontrunners are currently leading this change by engaging with employees and by developing educational programs and policies in support of local communities.