A profound transformation has been influencing the corporate agenda in recent years. With the advance of discussions around the private sector's responsibility towards people and the environment, companies need to incorporate a responsible position on ESG - an acronym that encompasses environmental, social and corporate governance aspects - into their actions. However, trying to hitch a ride on the issue without being truly responsible can seriously affect results and reputation. In the environmental context, communicating without acting is known as greenwashing, while in the social impact context it is called socialwashing.
To guide the coherence of the positioning and avoid falling into socialwashing, we present three essential points to guide a true positioning in social responsibility actions.
Social impact must be company-wide
Creating an area within the company that concentrates its efforts on social responsibility and sustainability actions is a great strategy, but concern for social issues needs to be transversal to operations. The S of ESG must be internalized, starting with the leaders and extending throughout the organization.
To start thinking about its social impact, the company needs to map risks, guarantee decent working conditions for its staff and suppliers, and adopt affirmative action for gender and racial equality. It is possible to boost the impact of social responsibility actions when they are linked to the main sector in which the company operates - since the company already has dominance and influence in the area.
Search for certifications
Market-recognized certifications, such as environmental and social seals, are important for providing direction and avoiding socialwashing. They provide stakeholders with a guarantee and, for the company, they present challenges and guidelines that contribute to the organization's evolution.
There are certifications aimed at different business sectors, but there are also those that look at a company's positioning in the face of the challenges of the new world, regardless of its area of activity. One of these is the B Corporation Certification, offered by Sistema B - an organization that articulates a global movement of people who use business to build a more inclusive, equitable and regenerative economy for people and the planet.
Define and measure impact indicators
In order to evaluate the effectiveness of any action and demonstrate its results, it is essential to have defined indicators and to measure their scope. This logic also applies to the social area. An impact measurement methodology enhances actions and reduces the risk of socialwashing.
To put this approach into practice, the first step is to define the right indicators. From there, it is possible to measure impacts, evaluate results and make decisions based on data to improve the effectiveness of actions. The indicators are the basis for joint reflection on the social intervention, which will define the action strategies, planning the guiding thread of the entire social action process.
In this journey, having partners with expertise in measuring and evaluating social impact results, such as Diagonal, further enhances the investment in actions. We are pioneers in social management in the public and private sectors and we are a benchmark in the market for our own innovative methodology. In our work, we believe in the importance of each stage: knowing; planning; acting; evaluating and monitoring; transforming.
For Kátia Mello, co-president of Diagonal, it's worth pointing out that you don't have to be a big company to follow good ESG practices, nor do you have to be active in social development. Small and medium-sized businesses are just as important as large companies for sustainable development.
For a long time, corporate social responsibility actions were put on the back burner because they were seen only as philanthropy, with less relevance to the company's performance. The role of companies in relation to sustainable development is now better understood and it is therefore hoped that the social aspect will not be neglected by the second sector from now on.
Kátia also stresses that companies need to bear in mind that sustainable positioning is not marketing, but social transformation. Sustainability is a collective journey with no end point. In view of this, socialwashing is not just a problem of reputation, but of values, and the demands of investors, employees, consumers and other stakeholders are here to stay.
