Episode 13: Demystifying the “S” in ESG

The Business Revolution Episode 13

In this episode of The Business Revolution, Mik, Alan, and Cherry dive deep into the often-misunderstood “S”-pillar of ESG – the “Social” pillar. 

Moving beyond typical perceptions of diversity and inclusion, they broaden the lens to explore the fundamental responsibility businesses have to the very fabric of society. 

Cherry, with her extensive background in organisational development and D&I, leads the discussion, emphasising that the “S” is not “soft,” but rather the foundation of trust, resilience and a company’s license to operate. It is the heart of your company!

Key discussion points include:

• Why social impact is critical for business success and longevity, extending beyond mere ethical considerations to tangible business outcomes.
• Moving beyond shareholder centricity and the imperative for businesses consider the impact of their decisions on all stakeholders – employees, customers, communities, suppliers, and the planet.
• Unpacking the hidden human suffering often embedded in global supply chains (e.g., modern slavery, unfair labor practices) and the ethical responsibility of businesses to ensure clean sourcing.
• How involving employees in social initiatives can boost loyalty, innovation, and overall organisational performance.
• The Importance of Awareness & Action. Encouraging businesses to understand the broad scope of social issues (beyond just DEI) and to take tangible steps towards positive community impact, even when noise from anti-ESG movements might suggest otherwise.
• A brief preview of how social impact can be measured to demonstrate tangible returns on investment for social initiatives.

The episode challenges leaders to ask, “Are we just? Are we human? Are we proud of how we treat people?” It underscores that there is no sustainable future without focusing on the people within and beyond the business.

Audio version:

Bios in brief: 

Mik Aidt
Mik has been a highly influential player with respect to our environment, with very active communications experience for over 10 years. Examples include playing a very significant part in the global ‘Climate Emergency Declaration’ movement, and long-lived podcasts.

Cherry Ward
Cherry is a seasoned leadership development expert, coach (ICF ACC), and advisor with over two decades of experience in the corporate world. She is also the founder of Bluebird Leadership, a boutique consulting firm pioneering innovative solutions that cultivate thriving leaders, teams, cultures, and a sustainable planet.

Alan Taylor
Alan has moved from corporate IT consulting into this domain because he adamantly believes that humans need to adapt, businesses can benefit from this new revolution and therefore he is determined to help it happen. Alan is an accredited coach (ICF ACC), supporting leaders and teams in personal and leadership development and transformation.

Episode 13 links

 𝐓𝐁𝐑 notes and transcript: www.businessrevolution.earth/businessrevolution13

𝐓𝐁𝐑 episode 13 for download: audio mp3

 𝐒𝐩𝐨𝐭𝐢𝐟𝐲: open.spotify.com/episode

 𝐀𝐩𝐩𝐥𝐞 𝐏𝐨𝐝𝐜𝐚𝐬𝐭: podcasts.apple.com

 𝐘𝐨𝐮𝐭𝐮𝐛𝐞: video

Social media posts: Linkedin – Facebook – Instagram

Transcript – episode 13

Mik Aidt (00:00)

Welcome, or welcome back, to The Business Revolution, the podcast where we are trying to rewrite the rules of business for a sustainable future. I’m Mik, your co-host.

Alan Taylor (00:11)

And I’m Alan.

Cherry Ward (00:12)

And I’m Cherry. We’re your guides on this journey to explore the intersection of business, sustainability and positive change.

Mik Aidt (00:20)

In each episode, we bring you inspiring conversations with experts and change makers who are proving that sustainability is not just good for the planet, it’s good for business.

Alan Taylor (00:31)

And we uncover innovative solutions, we share practical strategies, and we discover the new trends that will help the future of sustainable businesses in all of their contexts.

Cherry Ward (00:41)

So whether you’re a seasoned CEO, a budding entrepreneur, or simply curious about how to make a difference, you’ve come to the right place.

Mik Aidt (00:50)

So grab a cup of your favorite sustainable brew, settle in and get ready to be inspired. This is The Business Revolution.

JINGLE with song

Alan Taylor (00:58)

In this episode, we’re diving deep into the often misunderstood, yet absolutely critical pillar of the ESG, the S for social.

Mik Aidt (01:06)

And this is, you know, we often talk about it as something with diversity or being nice, you know, inclusion among the employees and so on. And that’s of course, that is a part of it. But today we are hoping to broaden out our lens to explore the fundamental responsibility that business actually have to the very fabric of society that they operate in.

Cherry Ward (01:27)

So we will be unpacking what it truly means for businesses to be good social citizens from how they treat their employees, know, engage with their communities to the ethical considerations within their supply chains and beyond. So this is going to be a really great episode to look at more broadly at the S.

Mik Aidt (01:46)

And we should mention that today we haven’t invited an expert in because we have one among us. Cherry, we consider you the expert of the S in ESG. So we’ll be hearing from you and about your experiences and actually interviewing you a little bit. But I think before we start, let’s again, like last time when we talked about the E, let’s first of all hear what would it sound like if a CEO was to stand up and say, listen, folks, employees, I’m calling you. This is what we are going to talk about when we talk about the S in ESG. Here’s a take on that:

CEO (02:21)

Thank you for taking the time to listen. I know you’re busy. Leading teams, driving strategy, managing complexity. We’ve talked about the S in ESG before. You might have written some soft kind words about it in your company’s latest CSR or ESG report. But let me be clear. The S in ESG is not soft. It’s not an afterthought. It is the foundation of trust, of resilience, of your license to operate. Because here’s the truth. Businesses do not exist in a vacuum.

Every company is embedded in a social fabric made up of workers, customers, suppliers and communities. And that fabric is fraying. We live in an era of polarisation, inequality, dislocation and mistrust. Around the world, people are questioning whether the system still works for them. Whether business still serves just shareholders and disregards everything else. If we as leaders don’t address that head on, then we are not just risking reputational damage for our company.

We are actually at risk of social collapse at a global scale. I am not here to suggest you can fix everything, but I am here to tell you that every business decision you make, how you treat your workers, how you pay your people, how you engage with your suppliers and community, it all matters. Social responsibility is not charity, it’s a strategy. Treat your employees fairly and you build loyalty, innovation and lasting retention. Invest in your communities and you create stable markets and sustainable growth. 

Prioritise diversity and inclusion and you unlock talent and resilience your competitors are missing. And let’s not pretend this is just an issue in the Western world. The global supply chains we depend on, from minerals to manufacturing to food, are often built on human suffering. Forced labor, child labor, unsafe conditions, these are not distant problems. They are embedded in the products we profit from. And silence is complicity. 

So the question becomes what kind of leaders do we want to be? The ones who look away? Or the ones who take responsibility? Who is accountable for the decisions and choices we’ve made? We cannot outsource ethics. We cannot defer values to a compliance department. Social impact is a boardroom issue, a leadership issue, your issue. And here’s the opportunity. Business can be the most powerful force for good in the world.

We can raise standards, empower workers and lift communities. Not someday, not hypothetically, but today through the decisions we make. So this is my challenge to you. Look beyond quarterly results. Ask what kind of society your business is helping to create. Will your legacy be extraction or contribution, exploitation or dignity? Because the world is watching, employees are watching, customers are watching, and the next generation of talent is making values-based choices.