How to Involve your Employees in Driving Social Impact

It’s official. Environmental, Social and Governance (ESG) is no longer a nice to have, it’s a “table stakes” imperative for today’s businesses. The change has been rapid, and it’s unsurprising that many organizations are now scrambling to catch up to changed investor, employee and public expectations. Whether it’s analysts seeking out ESG high performers, discerning talent choosing their next role based on a company’s values, or consumers voting with their dollars, an authentic ESG proposition, that supports a company’s efforts to live out its purpose, is essential.

Authentic is the operative word here. While many consulting firms have done well for themselves in building one-size-fits-all ESG checklists, ESG initiatives will invariably fail unless they are held as genuine values by the organization and its people. Much like the Pinnochio story we know so well, you can’t become real unless you care for others, show humility and seek to give as well as take.

The challenge facing many leaders, though, is exactly how you go about making this happen. While many ESG practices, such as transparent governance and good investor relations, are also just good business hygiene, it can be overwhelming to work out where to concentrate ESG efforts and resources. Harvard professor and ESG authority George Serefeim puts it this way: “Companies must move beyond box checking and window dressing. In a world that increasingly judges them on their ESG performance, they must look to more-fundamental drivers—particularly strategy—to achieve real results and be rewarded for them.”

We’ve previously spoken about how to integrate ESG across your business. In order to be both authentic and successful, your ESG initiatives should align with your purpose, and underpin your organizational strategy (rather than being a siloed branch of that strategy, as is commonly the case). And, as with any organizational transformation, an actively engaged leadership is essential.

However, that doesn’t mean that the c-suite should be responsible for the entire ESG implementation and operationalization. In fact, we strongly suggest the opposite. To fully embed sustainability in your culture and drive true social impact, it’s crucial that employees are deeply involved in planning and delivering ESG.

Here’s how to make that happen.

Why it’s important to involve staff in your ESG strategy

Employees need to be involved in designing and implementing change, to ensure they feel part of the process. When people feel listened to, they are much less likely to reject new ways of doing things, even if all their ideas weren’t incorporated, because they still feel valued by their employer. While you may not hand off your entire ESG strategic planning to employees, inviting their insights is key. Moreover, this approach gives your team members skin in the game – when it comes to implementing your ESG strategy and driving social impact on a daily basis, they will be invested in its success.

How to involve employees in driving social impact

Mapping out your ESG strategy is an exciting time. Your business has a purpose, and you’re more motivated than ever to put practices into place to bring that purpose to life. It’s inspiring to think of the impact that you can make in your community and beyond, as you walk your ESG journey. But for employees, this might be quite a change. You could be asking them to do more or different work, or perhaps they’re questioning whether this is still the same workplace they’ve been loyal to for a long time. Perhaps, to them, your ideas sound cynical, or they’d rather just show up and do their jobs, without thinking beyond the scope of their role.

Employees can see significant benefits from ESG. Sustainable businesses have better cultures, are more financially stable and have happier clients, which translates to more rewarding work. But to realize these benefits, it’s important to get your employees on board with your ESG strategy, not just accepting it as a “management initiative” but as something that they are also responsible for delivering.

Here’s how you can do that.

Invite them from the beginning

As you start to develop your ESG strategy, involve employees from day one. Ask them what your business’s social impact is now, where it can grow, and what they have seen done well elsewhere. Stress test your ideas – do they sound authentic to your employees? Do they think they’ll resonate with clients, partners and investors?

You know what they say about assumptions

But let’s take a step back. Before you even begin talking to your employees about amplifying your social impact, find out whether they actually understand what your business’ purpose is, and what you’re trying to achieve. Sound obvious? Don’t be so sure. Only 30% of employees understand their business’s strategy, and fewer than 10% can articulate their role in delivering it.

Look for leaders in surprising places

While it’s important for your ESG strategy to be directed from the top, with visible engagement from your leadership team, employees will be significantly more invested when they have opportunities to lead and participate in driving social impact, and feel responsible for the strategy’s success. Leaders aren’t always the ones with the fancy titles. You may have a receptionist, a first year accountant or a mechanic who is passionate about driving change, and has the social capital within your organization to do so.

Link sustainability and performance

A sure way to help employees understand that ESG is integral to your business, is to incorporate it into your performance management process. When employees see that driving social impact is a key part of their job, not a side-of-desk chore, they’ll be more inclined to direct their efforts toward sustainability. This isn’t meant to be cynical or manipulative. It’s a reality in today’s world that employees are overwhelmed with demands. Nine to five is a myth – with constant connectivity, pressure to be endlessly productive and countless projects to deliver on top of their day to day roles, it’s impossible for many employees to adequately prioritize their efforts. By including social impact as part of their performance metrics, you’re signalling that this is something that really matters.

Ask for feedback – and act on it.

Too often, corporate initiatives are funnelled down to staff through various internal communication channels, with no mechanism for employees to respond. The result is that team members can become jaded, feeling that their views aren’t important to the organization. To truly involve employees in driving social impact, it’s essential to listen to them. Regular feedback opportunities (not just the annual engagement survey) will not only help staff remain engaged, but provide a continuous improvement loop for your ESG strategy as well. The most important piece of the puzzle is not just allowing employee voices to echo into the void. Ensure feedback is recorded, discussed, and that employees learn what has been done with the information they took the trouble to provide.

How does your business involve employees in driving social impact? What has worked well? What lessons have you learned?