How can companies constructively engage with activists of all types to push for positive change?
ESG strategy development
Once a business leader decides that contributing to positive change is a priority, it can become a challenge to determine what is right for the company while balancing other business interests. The effort to add value must be genuine and consistent, as both employees and civil society actors are quick to call out ill-considered initiatives as PR efforts. Leadership must first determine what “right” means in an ambiguous world with evolving social and environmental landscapes.
One way to tackle this challenge is to develop—or continue to evolve—the corporate ESG strategy. By tying the strategy to corporate values in a coherent manner, stakeholders better understand what the company stands for and what it aims to achieve through its ESG work. For example, at Mastercard the core value of financial inclusion drives ESG initiatives—made more compelling because they form part of the company value proposition.
To reinforce the strategy, some companies have built a proactive framework for how they will respond to tough social or political issues. With a preconceived plan in place, business leaders feel better prepared to act efficiently and transparently. As a result, they have more opportunity to drive engagement even when stakeholders do not agree with decisions.
Consultation with stakeholders and collaboration with partners
Forming and deepening ESG strategies requires continual consultation with stakeholders. By listening to company stakeholders, business leaders can develop a better understanding of the complexity of risks and opportunities for positive change. ESG is a broad concept and that makes it an opportunity for rich and illuminating conversations.
Collaboration with other businesses can help drive positive change as well. The challenges facing the planet are beyond the ability of any one company to tackle. Companies can team up with like-minded partners who can amplify their efforts and push common goals.
The role of “B Corps”
In response to these trends, some companies have sought certification as B Corporations—known as “B Corps”—to demonstrate their commitment to inclusivity and sustainability. B Corps have raised the bar, voluntarily meeting externally determined ESG standards and incorporating them into their statutes.
B Corps are companies that have been certified by the nonprofit “B Lab” as meeting rigorous standards for social and environmental performance, public transparency and legal accountability to balance profit and purpose. B Corps consider the interests of their stakeholders—customers, workers, suppliers, communities, investors and the environment—in their decision making practices.
The B Corp community collaborates among themselves and with other stakeholders to take an activist stance. For example, ice cream manufacturer, Ben and Jerry’s, worked with chocolatier, Tony’s Chocolonely, to battle slavery in the chocolate supply chain by only sourcing traceable cocoa. B Corps also empower their employees and consumers to take action. For example, Brazilian beauty products manufacturer, Natura & Co., engaged in a campaign for World Amazon Day to educate people on joining environmental movements, using their vote to protect against deforestation and thinking more critically about their product choices.
Positive change for the next generation
Companies must grapple with social, political and environmental issues today that leaders 20 years ago would never have considered relevant. By being clear about their values and building strategies and frameworks to act on them, businesses can be at the forefront of leading positive change that will affect generations to come.
