There is much discussion about the actions and policies of the Trump administration and its wider impact on equality, diversity and ESG related initiatives within businesses.
Some organisations are rushing to react to the rhetoric, to change programmes and reposition their actions as if they were wrong or flawed.
In my opinion, there is nothing wrong with programmes or policies which advocate for improved equality, diversity, inclusion and other factors which are incorporated within environmental social governance (ESG) in the workplace.
These are integral elements of The Ten Principles of the United Nations Global Compact. These principles have been drawn from UN Treaties; they are truly universal; they don’t expire and provide a foundation to ESG. This foundation is of particular value at times like this when short-termism is on the rise and well-respected norms of corporate sustainability are being challenged. Respect for human rights, for workers, for the environment and for the rule of law is always good business.
In truth, ESG is the foundation of any well managed and operated business which is seeking to succeed.
Every organisation needs good governance; and leadership who consider the risks to the business, its people and the environment, both in terms of the environment in which it operates but also the impact on the natural world.
In respect of people and the social aspect of ESG; a good employer has positive human resources policies, treats people with respect, equally and encourages people from all backgrounds to succeed. As many business examples demonstrate equality is about maximizing talent. Greater diversity is directly correlated with gains in operational effectiveness, improving innovation, strategy, decision-making as well as results and profits.
A good business also recognises its place in the community and treats its customers fairly; both core elements of ESG.
In an environmental sense, any business which ignores climate change and its own impact on the environment will fail to adapt or transition to net zero unless, of course, it is only planning for the short term. Either way, pretending climate change has no consequence, or it is not happening, will ultimately impact the performance and the future viability of the business.
ESG Benchmark’s assessment, determines whether a business is achieving the necessary ESG standards. Ensuring that when they do, they can demonstrate this with confidence to their stakeholders, just as they would their competence on Information Security, Quality Management or Cyber Security. All in all, giving customers peace of mind that their supplier has the right foundations in place to be able to serve their needs now and in the future.