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Social sustainability is good for business. This helps open new markets, attract and retain customers, build trust and confidence, and foster innovation. And companies are taking this issue seriously, too. According to a recent NTT report, more than 40% of executives surveyed said social sustainability is a top priority for executives and boards of directors.
The United Nations defines social sustainability as “identifying and managing the impacts of business, both positive and negative, on people.”
Businesses directly or indirectly influence what happens to their employees, value chain workers, customers and communities, so it is important that they actively manage their impact.
NTT’s report is based on a ThoughtLab survey of 250 senior executives, with total revenue of $2.2 trillion, and highlights the economic benefits of prioritizing social sustainability. There is. Collectively, these companies generated more than $177 billion in additional revenue from their social sustainability efforts. This equates to an average revenue of $710 million per company.
Benefits of social sustainability
Companies are investing to build momentum for social sustainability efforts. Companies defined as first-timers (approximately 22 percent of those surveyed) reported investing an average of approximately $5.3 million in social sustainability, while companies considered leaders (also surveyed) reported investing an average of approximately $5.3 million in social sustainability. (about 22 percent of) invest nearly four times that amount, with an average of $19.5 million.
More than 60% of companies surveyed said they plan to increase spending over the next two years.
The benefits are clear. Companies report financial, strategic and operational improvements, which will continue to improve as society moves towards sustainability.
Companies that invested the most in social sustainability reported up to a 9.6% increase in revenue and up to 11.4% increase in employee productivity, with sustainability efforts contributing to employee efficiency. demonstrating the transformative power of
Social sustainability issues, such as lack of opportunity and deep inequalities, can have a significant impact on local economies.
For example, the World Bank estimates that $160.2 trillion in human capital wealth is lost due to gender inequality. That’s why it’s important that NTT’s report finds that social sustainability efforts not only drive the bottom line of individual companies, but also make a significant contribution to the broader local economy.
The study looks at social sustainability across eight regions (United States, Canada, Mexico, Germany, United Kingdom, Australia, Hong Kong and Singapore) and five industries (Manufacturing, Telecommunications & Technology, Retail & Consumer Goods, Financial Services, Health care and life sciences). A strategic shift towards further sustainability leadership could increase GDP by an additional $115 billion.
Social sustainability and the future of business
According to the NTT report, companies are making progress towards social sustainability goals, with around a quarter incorporating these goals into their products, services and business models. More than 50% of those surveyed expect social sustainability efforts to increase productivity and support economic growth, boost jobs in local economies, and improve the quality of education over the next two years. He said there was.
By aligning social and business values, these companies at the forefront of social sustainability drive top-line and bottom-line growth, enhance reputations, and increase shareholder value, while at the same time Contribute to long-term sustainability for the well-being and prosperity of all people.
Learn more about the business case for social responsibility.
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