The social benchmark framework is rooted in global initiatives, like the United Nations’ guiding principles and SDGs, which outline a “triple bottom line” approach: considering people, planet, and profit equally.
The SDGs include goals like reducing hunger and inequality, promoting good health and wellbeing, and encouraging business innovation. By focusing on these issues, companies can approach sustainability from a broader, more interconnected perspective, ensuring that every action they take benefits both society and the environment, all whilst unlocking opportunities and building partnerships.
Linking sustainability and social equity in business
As sustainability becomes more regulated, the focus is shifting from purely environmental issues to a more integrated view that includes social factors. The climate crisis affects people, communities, and businesses alike, and the solution lies in addressing these impacts together.
For example, the World Economic Forum’s Global Risks Report highlights how various risks such as climate change, societal shifts, and technological advancements are interconnected. Understanding these relationships can help businesses shape strategies that are forward-thinking and responsible.
Four areas of social sustainability in business
In practice, social sustainability shows up in several key areas within businesses, and it’s gaining more traction in company reports and everyday operations such as customer conversations.
1. Employee Wellbeing and Inclusion
Championing a diverse, inclusive, and supportive workplace culture allows people to feel that sense of belonging within an organisation. This can include employee resource groups that focus on gender, race, abilities, LGBTQ+ communities, and more. Ensuring employees feel a sense of belonging is crucial, as is prioritising their physical, emotional, and mental health through comprehensive benefits.
2. Community Engagement
Traditionally known as corporate social responsibility (CSR) or philanthropic outreach, community engagement is now woven into broader business strategies and annual reports. It includes supporting local initiatives, working with small businesses, and integrating charitable efforts into a company’s vision and priorities. This can also involve working with local business owners or SMEs and building up those networks in an organisation and more widely within the community. Strong community ties not only reflect social responsibility but also boost a company’s reputation and impact in the regions where they operate.
Social sustainability also extends to supply chains. This includes making sure suppliers uphold ethical labour standards, engage in equitable, fair practices, and adhere to modern slavery regulations. Transparency, accountability, and ensuring that workers in the supply chain are treated fairly are key aspects of a sustainable value chain.
4. Diverse Supplier Engagement
Another emerging focus is supplier diversity, which looks at who businesses are sourcing from. Are they supporting local suppliers or those from diverse backgrounds? This emphasis on supply chain diversity strengthens communities while ensuring labour standards are respected throughout the supply chain.
These efforts are also contributing to what is known as a “just transition”—the process of moving towards a lower-carbon, more sustainable economy in a way that’s fair and inclusive for everyone, particularly in industries and regions most affected by the shift to sustainability and Net Zero ambitions.
The people-focused path forward
As social sustainability becomes more central to business strategy, companies are not only meeting the growing demands of investors, customers, and employees but also building a stronger, more resilient future. By aligning social impact with environmental goals, businesses can create positive change that benefits people and the planet alike.
This comprehensive approach is not just about being responsible; it’s about being purposeful and positioning businesses for long-term success in a rapidly changing world.
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