Social responsibility is best shown off without chest-beating

Companies are focusing more on the Environment but should remember the Social side of ESG.

Adobe Stock 290340050

Applying ESG

We see more and more companies getting serious about ESG, the EU's system for Environmental, Social, and Governance by which an investment's sustainability and social impact can be measured. Companies are increasingly focusing on the E of the environment. This is, of course, great progress. But there is a risk that the S is in danger of being snowed under: the CSR company of the first hour, which took social responsibility seriously and was thus at the centre of society, is becoming less visible.

Social responsibility should not diminish

It would be a shame if this meant that taking social responsibility received less attention. After all, a tour of the most successful companies shows us that they consider it essential to be at the centre of society, show commitment, and bring people into their story.

Social share ownership

A new phenomenon is social share ownership, which is offered mainly by museums instead of sponsorship. In exchange for a monetary contribution, lenders receive concrete data on their social impact, which they can use in ESG reporting.

Authentic social responsibility

This is a good development. Let's hope it continues and replaces traditional sponsorship. Businesses should ideally not overly boast about their donations and let the funds be freely spent by the beneficiary social institutions. This shows that social responsibility really comes from the heart and is not taken purely for marketing reasons.