Engagement for purpose: A renewed focus on ESG - Environment, Social, and Governance

It's November, and the time of the year when we the residents of Delhi NCR our struggling and fighting our annual battle with the smog and pollution, which has unfortunately become a recurring nightmare in our lives. The issue of climate change is not just restricted to Delhi but across the world. Climate events due to global warming are threatening all – society in general and business.

Along with global warming, the hot topic across corporate boardrooms around the world is ESG - Environmental, Social and Governance). ESG has rapidly risen in relevance in recent years and are increasingly topping board agendas as customers, investors and stakeholders are demanding not only transparency into business practices but proactive plans of action that protect and safeguard ethical standards. Unfortunately, when it comes to ESG reporting, corporate leaders are split on its effectiveness and intended purpose as it is a reporting requirement primarily driven by investors and regulators. But while organisations are still sceptical of the ESG reporting, the ongoing climate crisis has put pressure on organisations to become more environmentally friendly and conduct their business in line with sustainability objectives.  Even the Delhi Declaration of the G20 begins with the theme - We are one Earth, one family, and we share one future - setting a strong pitch for a clean energy future, and calling for companies across sectors to ramp up their ESG goals.

With all the noise around, modern consumers and employees are more aware and know that the choices they make have an impact on their environment and community. Stakeholders' increasing expectation that organisations sustain action around the climate crisis, diversity, equity and inclusion (DEI), humanitarian needs and global inequality exacerbated by disaster and conflict are putting pressures on organisations to carefully consider how they advance much-needed progress in the face of ongoing politicization and polarization.

Organizations are also realizing the beneficial impacts of sustainable models and the fact that Purpose is more than just an organization's aspirational reason for being; it goes beyond profits alone. Consequently, organizations are rethinking their business approach by combining Profit, People, and the Planet when assessing their impact or setting goals. Purpose can not only be an organizational strategy and a roadmap to remain competitive in a fast-changing economy but also a way to set organizational strategy and guide decision making to maximize positive impact.

If organisations continue to leverage purpose and see their social investments as a critical lever in building healthier individuals, businesses and communities, they will come out stronger. Purpose-driven organisations go beyond their role of offering a product or service and develop programs that have a social or environmental impact. Organisations who maximize their social investments and leverage purpose to unify their workforce and drive positive change will see societal and business impact that long outlasts a recession.

Its important for organisations to keep re-evaluating their "purpose in society" and their narratives to reinforce transparency about sustainability, showing a real impact. Incidentally in 2007, Coca-Cola India had unveiled its five-pillar growth strategy that focussed on 5 P - People, Planet, Portfolio, Partners and Performance.  In the hyper-connected and hyper-transparent and digitally connected age, organisations have the challenge to cut through the noise with credibility and stand out in the crowd to be seen as authentic and credible and purpose driven.

Purpose-driven communication isn't a one-time endeavour; it's a continuous dialogue, a commitment to transparency, and a dedication to making a positive impact on the world.  The challenge for the Communication and PR team is to integrate new ideas and voices to showcase organisations commitment as a long-term partner in supporting a more inclusive economy and sustainable environment. The PR & Digital campaigns will have to integrate new ideas and voices to showcase organisations commitment in supporting a more inclusive economy and sustainable environment which will be core part of the overall business strategy. The campaigns will not only have to control the narratives but also manage the Truth-Trust-Transparency and the communication outreach to focus on cultivating an engaging relationship with the stakeholders.