The UN Global Compact is a UN program bringing together private corporations, UN agencies, and civil society groups to work on solutions to the challenges of globalization.
As part of their meeting in New York this week, several related studies have been released. Goldman Sachs released a study showing that large public firms that are considered leaders in implementing environmental, social and governance (ESG) policies have outperformed the general stock market and their peers over the last 2 years.
McKinsey released the results of a survey of participating Global Compact CEO’s (mostly large public corporations) on the topic of ESG and 72% of the respondents said that corporate social responsibility should be embedded fully into corporate strategy and operations. Key quote from the UN press release:
“Taken together, these … reports show that for an increasing number of business leaders, corporate responsibility is no longer an option, it is a necessity in order to compete successfully…”
Many small businesses officially or unofficially have implemented ESG policies. A recent American Express survey showed that the majority small business owners are concerned about global warming and willing to pay more for green products. Inc. magazine also has an article on B Corporations, which are companies that include social responsibility language in their articles of incorporation. Key quote:
“To become a certified B Corporation, a company must amend its articles of incorporation to say that managers must consider the interests of employees, the community, and the environment instead of worrying solely about shareholders.”
It is increasingly clear that businesses of all sizes can do well by doing good. Because of this, social entrepreneurship will continue to grow.
Comments