In the investment world, there’s been a lot of talk about impact investing or ESG (environmental, social, and governance). Major companies make a lot of noise about their ESG strategies, which may involve anything from reducing their use of fossil fuels or their carbon footprint to donating to social causes that many people support.

Walking the walk instead of just talking the talk

The problem with thinking along the lines of ESG is that often, companies spend more time talking about what they’re doing for the environment or social causes rather than actually doing something about the causes that supposedly matter to them. Management teams can do something about this by looking beyond the talk and seeking ways to “walk the walk.”

Public relations campaigns play a major role in many companies’ strategies, and ESG often is part of those PR campaigns. After all, management teams like to make their company look good by spreading news about everything it does to make the world a better place. 

But managers should think about changing the focus from talking about what they’re doing for the world to actually doing as much as possible to improve it. People don’t need a PR campaign to see the good a company is doing if the manager has actually put that good into action. 

It’s OK to start with ESG

For many companies, the ESG focus might not start with a view on how to make them look better in the eyes of the general public. Management teams start by thinking about what really matters to them and what they can do as the management of a company to make the world a better place. 

It’s often not until later that they realize what social issues can do to give their company a boost in the eyes of their customers and prospective customers. However, the proper way to think about ESG is to focus on making a difference in the world instead of just changing how people view your company.

Starting with an ESG mindset can help you identify the causes that matter to you the most, both as a business owner or manager and as a company. Some areas of importance will be more obvious because of the type of industry the business operates in. For example, a women’s clothing brand may choose women’s issues as an area of social interest. 

Making a difference

After identifying the issues that matter the most to you, it’s time to start making a difference. One way companies can make the world a better place is through volunteerism, and great companies encourage their employees to volunteer with a charity that works in an area of their interest. 

You may want to consider rewarding employees for spending time volunteering because that will usually convince more employees to volunteer. Such rewards can include a monetary bonus or some other perk. 

Donating money to your favorite causes is also important, and this can be done in various ways. You can choose to donate a percentage of your profits to a particular charity that’s important to you. Another way is to offer to make matching donations when your employees give some of their paycheck to one of your favorite charities. 

You can also make a difference by changing your policies and procedures. For example, maybe you want to reduce the amount of paper or other resources you use. You can also encourage your employees to cut back on the resources they use.

There are many ways to make a difference, but every manager or business owner should put their own spin on the matter. Thinking like a big company with ESG policies is a great place to start, but business owners have opportunities to go even further and really shape the way they make a difference in the world.

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