The 'S' in ESG: the challenge of making social engagement a core part of business strategy
The importance of the social dimension in ESG (Environmental, Social, Governance) strategies is still a challenge for the business sector despite making considerable progress in recent years as regards considerations such as environmental impact. However, it is becoming increasingly urgent and strategic for social engagement to be incorporated into core business decisions. In the framework of their lecture series, Esade and the SERES Foundation organized a session entitled ‘S, the forgotten ESG issue', in which representatives from Aena, PwC and Redeia shared their experiences and approaches regarding how companies can drive social change. This event in the Esade-SERES Foundation Lecture Series addressed issues such as the obstacles and challenges of implementing this and highlighted the importance of identifying the creation of social value as a cornerstone of corporate sustainability. It was presented by Ignasi Carreras, professor and director of NGO Management Training Programs at the Esade Institute for Social Innovation, and Ana Sainz, director general of the SERES Foundation.
Responsible people management
Ignasi Carreras began the event by sharing his thoughts on the priority that the sector has given to environmental issues, partly as a result of “regulations, social conscience and the circular economy”. He also emphasized the importance of addressing social considerations too: “The ‘S’ is very important because it involves responsible people management, training, development, diversity policies, inclusion, equal pay, safety, health and everything arising from the impact of AI which is accelerating inequalities. It also involves the value chain, human rights, product responsibility, inequalities and the struggle against corruption”.
Ana Sainz emphasized the need to make companies’ social payback tangible: “Social considerations – one of the most demanding management dimensions, and in-house too – faces the major obstacle of making its payback tangible. Companies and their leaders must to able to measure their impact on employees, customers, suppliers and the communities in which they operate in order to underpin the importance of social considerations. This is precisely why we have created the Mapa SERES de Huella Social ® (the SERES social footprint map), a unique model for measuring the social impact of corporate business, enabling us to highlight the positive social impact that companies have on society and add it to their economic performance.”
Social commitment in different business sectors
In his speech, Juan Ávila, director of Redeia’s Social Innovation Department, stressed the importance of taking into account the social requirements of the areas where companies are located. “Here at Redeia we believe that caring for the environment is just as important as caring for the people who live in the areas where our companies are located. This is why we have a Comprehensive Impact Strategy designed to address four social divides that affect rural communities in particular: digital, territorial, generational and gender inequality. We address these key points in the social focus of our ESG commitment by undertaking innovative social ventures in partnership with social entities, public authorities and other socially engaged companies.”
Ricardo Campo, head of Social Sustainability and ESG Reporting at Aena, highlighted his company’s commitment to social value in the communities where Aena operates. “Aena’s Sustainability Strategy enables us to adapt our social sustainability actions to create value in the communities where we operate, and respond to current socioeconomic demands. We focus on providing support for vulnerable groups, accessibility, education, research and respect for human rights, nurturing local development and working with other organizations in order to maximize our positive impact.”
Finally, Marta Colomina, managing director of Marketing, Sustainability and Foundation at PwC, agreed with Ignasi Carreras that “‘S’ has been overlooked, it’s been overshadowed by the environment”, partly because of the lack of clarity about what is involved. She did, however, feel that the COVID-19 pandemic was a sea change that made companies aware of the importance of “caring for their employees and customers and strengthening their relationship with suppliers.” She ended by saying that “social considerations are undeniably important for both corporate growth and the development of society. What matters is for each company to pinpoint and boost the areas where they can make the greatest impact.”
