In this current climate of labor shortage and disrupted supply chains, a company’s ESG efforts become vitally important. Case in point, attracting new talent: did you know that 92% of the workforce consider a company’s ESG profile in their employment choice? This week, as we look at how companies’ ESG efforts play out in different organizational outcomes, one point becomes crystal clear: building a strong ESG profile has become absolutely critical.
ESG efforts now play an important role in making a company a sought-after, employee-friendly workplace. A company’s ESG investment affects their workforce from employment choices to employee morale and retention, and the majority of companies believe that their ESG efforts have a positive impact on their workforce culture.
Some industries have shown resistance to embracing ESG investment as a catalyst for organizational improvement, even though this investment has proven to help companies position themselves not only as diverse, inclusive, and desirable workplaces, but as organizations known for caring about the goodwill of the public and the planet. Over half of companies (51%) reported that their ESG efforts have had a very positive impact on their environmental and social initiatives. As we’ve mentioned before , 76% of consumers consider a brand’s ESG position in their purchase decision-making, prioritizing those that prove they are committed to improving their environmental and social impact. This is where ONR can help. By helping your company collect the right kind of feedback from your workforce, customers, and stakeholders, your organization can optimize its ESG efforts for measurable results.
We’ve discovered that ESG efforts are producing a variety of organizational outcomes at different levels, across different industries. Let’s dive in to this week’s data for a closer look.
Organizational outcomes of ESG efforts in Tech Companies
Of all the industries we surveyed, Tech companies are reporting the least positive impact of their ESG efforts on their organizational outcomes. Nearly half of Technology companies (48%) report their ESG efforts having a very positive impact on workforce outcomes, and 41% report the same for ESG outcomes. Over a third report their company’s ESG efforts are having a very positive effect on DEI initiatives, while just 29% of companies acknowledge very positive results towards their financial outcomes.
Organizational outcomes of ESG efforts in Healthcare and Pharma Companies
True to form, Healthcare companies are seeing the biggest impact on organizational-level outcomes from their ESG efforts. Over two-thirds of companies are seeing a very positive impact of their ESG efforts on workplace outcomes (70%), ESG outcomes (67%) and DEI outcomes (67%). Furthermore, 43% of companies report their ESG efforts having very positive impact on financial outcomes, 1.2 times more than the average.
Organizational outcomes of ESG efforts in FSI & Investment Companies
Second, only Tech companies, FSI and Investment companies are reporting the lowest positive organizational outcomes from their ESG efforts. While we saw below-average results for all outcomes, more than half of the companies surveyed reported that their ESG efforts are having a very positive impact on workforce outcomes. Also, 44% of companies report a very positive impact on ESG outcomes, and 43% of companies report similarly for DEI outcomes, due to their ESG efforts. Finally, nearly a third of FSI & Investment companies are seeing a very positive impact of their ESG efforts on their financial outcomes.
Organizational outcomes of ESG efforts in Retail and Consumer Companies
Overall, Retail and consumer companies are noticing considerable positive impact from their ESG efforts on their organizational outcomes. Over half of the companies, we surveyed are seeing their ESG efforts have a very positive influence on both their company’s workforce and ESG outcomes. Furthermore, 47% of companies report that their ESG efforts are having a very positive impact on DEI outcomes, while 35% of companies report the same for financial outcomes.
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