The top benefits of considering social good and ESG in your business plan

In the business world today, terms like sustainability, social good and ESG have become commonplace. However, they’re far from buzzwords or just passing fads—they’re essential building blocks of any business, and they’re here to stay. By engaging in ESG practices, businesses can enjoy a bevy of benefits that can help their company thrive for years to come. Here are just five ways social good initiatives can help businesses succeed:

1. Boosts your bottom line

Although some may assume that implementing ESG and social good practices may cost them more money, the opposite is true. In fact, businesses that make ESG a priority have boosted their profits by 9.1%, according to Moore Global. Instead of just looking out for their bottom line, businesses should be focusing on their triple bottom line or the three Ps: profit, people and the planet. That way, it’s a win-win-win situation for everyone.

2. Improves company culture and morale

According to 2022 data from McKinsey, 70% of workers say they derive a sense of purpose from their career, and that meaningful work helps them perform better and remain committed. Increasingly, employees want to feel like they’re making a difference through the work they do every day. If employees feel like they’re working for a company that’s working towards positive change in the world, they’ll be more likely to stick around and work hard to achieve a common goal.

3. Attracts top talent and investors

In addition to retaining talent, ESG can also help attract top talent. In the war for talent, many companies are scrambling to find qualified candidates that fit their needs. Companies that support sustainable and ethical initiatives are more likely to attract the top talent in their field. This may be especially true for Gen Z candidates, who are generally more sustainably-minded, and represent the next generation of the workforce. 

Investors are also more likely to invest in companies with high ESG performance because they’ve been shown to garner higher returns.

4. Gains consumer trust

In addition to earning the approval of employees, potential candidates, and investors, strong ESG practices can help companies gain the trust of their target market. Millennials and Gen Z are two of the generations with the most spending power today, and research shows they’re more likely to buy from sustainable brands that align with their personal values, so capturing their hearts and minds is essential for many companies. Consumers are more likely to buy from companies that they trust, and operating with ethical and sustainable business practices is a big part of earning their trust.

5. It’s the right thing to do!

At the end of the day, doing business in a way that’s ethical, sustainable and responsible is simply the right thing to do. Making time for social good initiatives and helping others goes beyond business profits—it’s about humans coming together to create positive change in the world, which really is a beautiful thing.
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