How does the new King’s commitment to charitable giving inspires better ESG?
It’s no secret that King Charles’ passion for sustainability and social responsibility has led him to establish various charitable organisations.
Charities like the Prince’s Foundation and the Prince’s Trust are aimed at creating a better world for people of all backgrounds. The Turquoise Mountain foundation, one of his most prominent efforts, has made significant strides in protecting heritage and communities worldwide while promoting economic development. With the founding of Duchy Originals in the 1990s, King Charles prioritised improving soil fertility, biodiversity, and human health, setting an example for companies to follow in their ESG commitments.
By aligning business practices with ESG principles, companies can make a meaningful impact towards creating a more sustainable and socially responsible future.
What is ESG
ESG is a term used to describe the three main factors used to measure the sustainability and societal impact of an investment in a company or business. These factors are environmental, social responsibility, and corporate governance.
- Environmental factors include things like a company’s impact on climate change, resource depletion, and pollution.
- Social responsibility includes factors like the treatment of employees, human rights, and community relations.
- Corporate governance includes things like board structure, executive compensation, and shareholder rights.
The benefits of a positive ESG
As HR professionals, it’s important to recognise the value of incorporating ESG principles into company operations and to recognise the potential benefits that can come from doing so.
Retaining top talent
First and foremost, incorporating ESG principles can help to attract and retain top talent. As the workforce becomes increasingly conscious of social and environmental issues, employees are more likely to seek out companies that align with their values. In fact, a study found that 87% of employees would be more loyal to a company that supported social or environmental issues. By prioritising ESG, companies can demonstrate their commitment to creating a positive impact and attract like-minded individuals who are passionate about the same issues. Read: How to stop your top talent walking out the door | Moorepay
Increased business opportunity
Furthermore, companies that prioritise ESG are more likely to be viewed favourably by prospects, investors, and customers. This can lead to increased business opportunities, stronger partnerships, and improved reputation. For example, King Charles’ Duchy Originals brand has been able to donate all its profits to charitable causes and partner with leading British supermarket Waitrose, leading to over £30 million in profits. Read about Duchy here
Lastly, incorporating ESG principles can improve overall company culture and morale. Employees are more likely to feel motivated and engaged when they feel they’re making a difference, and a company that prioritises social and environmental responsibility can help foster a sense of purpose and shared values among employees. This can lead to improved job satisfaction, productivity, and overall employee well-being.
HR departments can take several steps.
First, it’s important to evaluate current company operations and identify areas where sustainability can be improved. This could include implementing energy-efficient practices, reducing waste, or sourcing from sustainable suppliers. HR departments can work to create a culture of sustainability by educating employees on the importance of ESG and providing opportunities for them to get involved in company initiatives. This could include hosting volunteer events or promoting eco-friendly practices in the workplace.
Diversity and inclusion is a huge part of the ever changing working landscape. Creating an environment where employees feel safe to express themselves is key to positive well-being. Moorepay have set up Moore Visibility, which consists of forums and role models where those who are part of the LGBTQIA+ community can come together and discuss issues. This community is visible to the entire colleague network in order to educate others. You can read about our diversity commitments here.
Lastly, HR can work to incorporate ESG principles into company policies and procedures, ensuring that it’s a priority at all levels of the organisation.
With the British spotlight in May 2023 being thrust upon King Charles during his Coronation, so too does the importance of ESG. Is your business doing all it can? As this article has shown, in the long run ESG isn’t additional spending, but an investment in the long twrm growth of a company.
You can read about Moorepay’s commitments here