GLOBAL FEATURE
Social impact and sustainability
Corporate social responsibility is not a new concept , but it ’ s something that retailers must prioritise if they want to remain competitive in the rapidly changing labour market .
In a survey this year by Deloitte of more than 22,000 Gen Zs and Millennials in 44 countries , 75 per cent of respondents said an organisation ’ s community engagement and societal impact were important factors when considering a potential employer .
In addition , more than 70 per cent of Gen Zs and Millennials said environmental credentials and policies were important when considering a potential employer . And 20 per cent said they had already changed jobs or industries due to environmental concerns , while about a quarter said they planned to in the future .
On the flipside , an analysis by Culture Amp found that companies taking action on climate change by setting science-based targets had 2 percentage points higher engagement than a control group matched by industry , region , company size , employee tenure and employee age .
“ The largest impact is on employee commitment , with employees at companies with science-based targets being 4 percentage points more likely to see themselves working there in two years ’ time ,” Culture Amp senior data journalist Heather Walker and lead research people scientist Fresia Jackson wrote in an article titled , “ An eco-work ethic ? How sustainability influences employee engagement .”
“ This boost in commitment suggests a direct link between environmental action and workplace loyalty ,” they stated .
The Deloitte survey found that the areas where employees want to see their organisations invest more resources to help fight climate change are :
• educating and training employees on how to be more sustainable
• providing employee subsidies for making sustainable choices
• renovating office locations to be greener
• transforming the core business model to be more sustainable
• committing to net-zero greenhouse-gas emissions within the next decade
• working more closely with governments to advance sustainability initiatives
On the topic of societal challenges , the areas where employees believe businesses can make an impact are :
• protecting the environment
• helping ensure that technology such as GenAI is used ethically
• ensuring equal pay and pay transparency
• creating inclusive employment opportunities
• supporting educational programs , scholarships , and mentorships
No matter what steps a business takes , however , it must be a genuine commitment , not merely a marketing message . So , how can retailers ensure their efforts resonate with team members ?
In the Culture Amp article , Carmen Wong , board chair for the company ’ s employee resource group focused on sustainability , said , “ It comes down to having a really clear mission , being transparent in what you do , leading by example from the top , and giving back to the community .”
Who is doing it well :
Patagonia US outdoor apparel brand Patagonia is widely recognised as a leader in responsible retail . The brand ’ s infamous ‘ Don ’ t buy this jacket ’ ad in 2011 asked consumers to rethink their buying behaviour long before circular fashion was trendy and showed retailers there was another way to approach major sales events like Black Friday .
In 2012 , Patagonia became the first B Corp in the state of California , prioritising environmental and social concerns over turnover , and in 2022 , founder Yvon Chouinard took this a step further by giving away the company to a trust that uses its profit to fight the climate crisis , rather than selling it or taking it public .
The unprecedented move not only made headlines but also earned the respect of Patagonia ’ s employees , many of whom are drawn to work at the brand because of their shared values .
For example , one of the company ’ s unique perks is its Environmental Internship Program , which allows employees to take up to two months off work to engage in a fully paid internship for an environmental organisation . Patagonia has stated that the program has led to valuable sustainability insights , changed internal mindsets and formed stronger relationships with sustainable organisations . More than 1000 employees have participated so far .
It ’ s no surprise that Patagonia ’ s employee turnover rate is reportedly less than 4 per cent , well below the industry average .
August 2024 www . insideretail . asia 27