INGENIEUR
INGENIEUR
regarding their ESG performance , enabling stakeholders to make informed decisions .
● Compliance with Regulations : Adherence to applicable laws and regulations is fundamental to governance under ESG . Companies need to comply with environmental , social , and governance laws and standards .
Overall , governance under ESG emphasises responsible and sustainable business practices that take into account the broader impact of the company on the environment , society , and its own internal structures . This approach is increasingly important for investors and stakeholders seeking to support businesses that prioritise ethical and sustainable practices .
THE “ S ” FACTOR
Social aspects under ESG cover a range of issues related to human rights , labour standards , community engagement , and social inclusion . The World Bank recognises that social sustainability is crucial for the success and impact of development projects .
Addressing social issues under ESG considerations involves focusing on the social impact and responsibilities of a company . Here ' s how companies can tackle social issues under the ESG framework :
● Diversity and Inclusion : Promoting diversity and inclusion within the workforce is a crucial aspect . Companies should aim to create a workplace that is representative of different demographics , fostering an inclusive culture .
● Labour Practices : Fair labour practices are vital . This includes ensuring fair wages , safe working conditions , and respecting workers ' rights . Companies should also address issues related to child labour and forced labour .
● Community Engagement : Engaging with local communities positively is essential . This may involve philanthropy , community development projects , and being mindful of the social impact of the company ' s operations on local communities .
● Human Rights : Companies should uphold and respect human rights standards , both within their operations and in their supply chains . This includes avoiding complicity in human rights abuses .
● Customer Relations : Ensuring fair and transparent business practices in dealing with customers is crucial . This involves providing accurate information , fair pricing , and addressing customer concerns responsibly .
● Product Safety and Quality : Ensuring the safety and quality of products is part of social responsibility . Companies should prioritise producing goods and services that meet ethical standards and pose no harm to consumers .
● Employee Well-being : Beyond fair wages , companies should focus on the overall well-being of their employees . This includes providing benefits , promoting work-life balance , and addressing mental health concerns .
● Supply Chain Responsibility : Assessing and managing social risks within the supply chain is crucial . Companies should strive to ensure that their suppliers adhere to ethical and socially responsible practices .
● Stakeholder Engagement : Regular communication with various stakeholders , including employees , customers , investors , and the broader community , helps in understanding and addressing social concerns effectively .
● Transparency and Reporting : Companies should be transparent about their social impact and efforts to address social issues . Regular ESG reporting can help stakeholders assess a company ' s commitment to social responsibility .
The ‘ S ’ in ESG is also about Socially Responsible Investing ( SRI ) which is an investment strategy that highlights this one facet of ESG . SRI investors seek companies that promote ethical and socially conscious themes including diversity , inclusion , community-focus , social justice , and corporate ethics , in addition to fighting against racial , gender and sexual discrimination .
REFERENCE UNEP , TechTarget , Forbes , World Bank
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