Whiplash Team, 15th July 2022
The corporate purpose is gaining ground as the element to attract and retain talent
Under the title Sustainability, a vision for an uncertain future, Forética has presented its annual report on sustainability. The report collects trends in terms of Environmental, Social and Good Governance (ESG) criteria.
The Forética 2022 report highlights the degree of vulnerability and uncertainty that companies face on a global scale. The COVID-19 pandemic, geopolitical conflicts – led by Russia’s invasion of Ukraine – and the rise of energy prices are the triggers for this new situation where demand of ESG criteria has increased.
Sustainability, the report maintains, has become “a necessary element of the new world order layout after the latest geopolitical events.”
In this edition of the report, for the first time the social aspects outnumber the environmental ones, where the corporate purpose is positioned as a prominent element. This is something that companies must take into account when applying ESG criteria in their business strategies.
The purpose as a strategic element in the daily operations of an organisation has been one of BrandSmith’s proposals since its onset. A clear and defined purpose, implemented with coherence and consistency, is key in managing the intangibles of a brand and in the company’s long-term roadmap.
The importance of corporate purpose is made clear in this new Forética report, especially with regards to attracting and retaining talent.
The pattern of economic compensation as a fundamental instrument to hire and retain the best talent begins to fade, to the extent that potential candidates focus on emotional rewards in the form of greater personal satisfaction and the alignment of their personal values with those of the company.
Consumers, for their part, also score ESG criteria highly when assessing what makes a company “a good company”. For citizens, the most valued aspects are “concern for employees, the quality of products and services, customer service, ethical behaviour and respect for the environment”.
In addition, “44% of those surveyed consider that ESG aspects contribute to improving the economic results of the company, while another 48% understand that the benefits become a reality because they result in helping society”.