Publications
Publications
- September–October 2020
- Harvard Business Review
Social-Impact Efforts That Create Real Value
By: George Serafeim
Abstract
Until the mid-2010s few investors paid attention to environmental, social, and governance (ESG) data—information about companies’ carbon footprints, labor policies, board makeup, and so forth. Today the data is widely used by investors. How can organizations create real value and impact from their ESG efforts? Too many companies have embraced a "box-ticking" culture and fail to see any value from their ESG efforts. I describe a five-pronged approach for companies to better manage and govern resources allocated to ESG issues.
1) Think ESG as competitive advantage
2) Create accountability for ESG throughout the organisation
3) Identify a corporate purpose and build a culture around it
4) Give ESG responsibilities to core business leaders
5) Commit to transparency to ensure learning and continuous improvement
1) Think ESG as competitive advantage
2) Create accountability for ESG throughout the organisation
3) Identify a corporate purpose and build a culture around it
4) Give ESG responsibilities to core business leaders
5) Commit to transparency to ensure learning and continuous improvement
Keywords
Sustainability; Sustainability Management; Esg; Esg (environmental, Social, Governance) Performance; Esg (environmental, Social, Governance) Performance; Esg Disclosure; Esg Disclosure Metrics; Esg Ratings; Esg Reporting; Social Impact; Impact Measurement; Social Innovation; Purpose; Corporate Purpose; Corporate Social Responsibility; Strategy; Social Enterprise; Society; Accounting; Investment; Environmental Sustainability; Climate Change; Corporate Strategy; Mission And Purpose; Corporate Social Responsibility And Impact; Financial Services Industry; Chemical Industry; Technology Industry; Consumer Products Industry; Pharmaceutical Industry; North America; Europe; Japan; Australia
Citation
Serafeim, George. "Social-Impact Efforts That Create Real Value." Harvard Business Review 98, no. 5 (September–October 2020): 38–48.
About The Author
