What is social sustainability in business? | Enel X (2024)

The United Nations Global Compact is very clear about the definition of social sustainability in business: “Directly or indirectly, companies affect what happens to employees, workers in the value chain, customers and local communities, and it is important to manage impacts proactively”. Indeed, many businesses have adopted environmental sustainability practices in recent years, and the concept of sustainability in business is now a familiar one. Social sustainability works along the same lines as environmental sustainability but focuses on businesses' impact on people instead of on the environment.

What does it mean to be a socially sustainable company? Citing from the Global Compact, it requires as a minimum that companies “undertake due diligence to avoid harming human rights and … address any adverse impacts on human rights that may be related to their activities.” There are several examples of actions companies can take to promote social sustainability, including:

  • creating decent jobs, goods and services that help meet basic needs;
  • developing more inclusive value chains;
  • promoting public policies that support social sustainability.

According to the United Nations Global Compact being socially sustainable businesses can also attain important advantages, including:

  • unlocking new markets;
  • having an easier time retaining and attracting business partners;
  • being more innovative in terms of developing new products and services;
  • increasing productivity.

Of course, the cornerstone of all corporate social responsibility is promoting human rights, everything from gender equality in work to education and healthcare.

How can your company become more socially sustainable?

The issue of sustainability for companies today is essential, and the growing attention paid to the social aspects of a company’s strategy, in particular, is driving organizations to develop their social sustainability.

Firstly, companies need to assess the impact of their corporate policies on the daily life of their employees. These policies should address and include the creation of adequate jobs, goods and services that help meet basic needs, while creating inclusive value chains. The respect of employees’ rights, safety, diversity, work-life balance, well-being and internal communication are all aspects that must be taken into consideration when trying to create a more equitable work environment.

What is social sustainability in business? | Enel X (1)

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However, this alone is not sufficient. Companies today understand it is important to involve local communities, offering support in the form of information or by providing specific resources that will help them. This effort also involves choosing products that come from a supply chain that respects the rights of the employees involved in the production process. In order to achieve this, it is helpful for these separate entities to work together, creating a virtuous cycle and pooling strengths together to increase their positive impact on the community. This is what is intended by social sustainability in business today.

Giving back to the community

Any organization, regardless of its size, has the opportunity to give back to the community a part of what it has earned, by making its valuable expertise and resources available for the improvement of the daily lives of people, thereby contributing to social sustainability. In practice this can happen by hosting awareness-raising events on topics that are important for the company and the community, such as donations for those in need, volunteer opportunities for employees during their work hours or even partnerships with local administrations to build infrastructure that improves social well-being. This enables sustainable business with a positive social impact.

Prioritizing health and safety

Security and safety are the pillars at the base of any modern company and they must be constantly improved and monitored to offer employees a working environment which is free of any hazard. Some of these practices are:

  • Keeping the work areas clean
  • Providing the adequate amount of equipment and training
  • Implementing the adequate safety protocols
What is social sustainability in business? | Enel X (2)

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Supporting a more ethical production chain

The entire production chain needs to be safeguarded from employee mistreatment, or worse, abuse. Companies need to be the ones taking the first step in this regard, changing how they secure their resources and materials. This means there must be careful consideration and attention given when choosing suppliers.

What are the benefits and advantages of social sustainability in business?

What is the importance of sustainability? Expanding the social dimension of sustainability in a company has a significant impact on all aspects of its organization, including the value of its final product or service and the general perception the consumer has about it.

Furthermore, as outlined in the UN Global Compact, which Enel joined in 2004, aiming for social sustainability helps businesses in numerous ways.

These advantages include:

What is social sustainability in business? | Enel X (3)

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  • Employee benefits: they workers are more involved and engaged in business processes. Such engagement has the added benefits of increasing the company’s attractiveness to professionals on the lookout for new work opportunities.
  • Business benefits: socially sustainable practices improve the company’s exposure and reputation, contributing to attracting new clients while consolidating existing relationships.
  • Social inclusion: increased inclusiveness ensures that talent is not wasted and the overall quality of the employment market is improved.
  • Improving risk management: increased security helps to prevent workplace accidents and resource waste.

What are the examples of social sustainability in business?

Social sustainability impacts are harder to measure than profits or reducing carbon dioxide emissions because they take into consideration a range of issues that go beyond a company’s financial performance and operations. Social sustainability is about things like bringing people together, creating communities and shared experiences that build trust and help promote empowerment. Corporate social responsibility and sustainability examples include things like combating human rights abuses and improving work-life balance. Following are some sustainability and corporate social responsibility examples applied to the business world:

  • Work-life balance: flexible work hours and remote working are ways to support employees as they seek to care for children and elderly parents or pursue a career goal.
  • Childcare: some companies offer on-site childcare facilities. Unequal access to expensive childcare is a discriminatory factor in many countries. Childcare facilities make it easier for single parents to keep their jobs.
  • Healthcare: providing access to healthcare for people who may have difficulty doing so on their own is an easily measurable way to contribute to employee and/or community well-being.
  • Social Equity: this is about creating an environment which gives equal opportunities to all to thrive and ensures that everyone’s voices are heard when it comes to making decisions that affect their lives. It’s about giving people a platform from which they can make an impact.
  • Work-life balance: flexible work hours and remote working are ways to support employees as they seek to care for children and elderly parents or pursue a career goal.
  • Childcare: some companies offer on-site childcare facilities. Unequal access to expensive childcare is a discriminatory factor in many countries. Childcare facilities make it easier for single parents to keep their jobs.
  • Healthcare: providing access to healthcare for people who may have difficulty doing so on their own is an easily measurable way to contribute to employee and/or community well-being.
  • Social Equity: this is about creating an environment which gives equal opportunities to all to thrive and ensures that everyone’s voices are heard when it comes to making decisions that affect their lives. It’s about giving people a platform from which they can make an impact.

What is the difference between social sustainability and inclusive sustainable development?

The difference between social sustainability and inclusive social development is that the first refers to company policies, and the second is a macroeconomic concept related to development that involves governments and policymakers.

Inclusive sustainable development is economic growth that takes social and environmental impacts into account so that wealth created from investment is shared broadly, leaving no one behind. Social inclusion happens when discriminated groups can access the institutions, resources, and opportunities necessary to improve their dignity and live a socially valued life. Inclusive growth means reducing inequalities in income and opportunities while also promoting empowerment and equal opportunity.Inclusive sustainable development is fundamental to achieving the 2030 United Nations Sustainable Development Goals (SDGs) that are vital to securing the long-term health and safety of the planet and its human population.The 17 SDGs are built on interlocking principles of poverty reduction, environmental protection, peace, and sustainable economic growth.

Many of the Sustainable Development Goals are directly related to social inclusion principles such as gender equality, fair employment, and education. So, a business that achieves inclusive sustainable development also makes progress towards a goal of reaching the SDGs.

There are a number of ways that sustainable development can reduce inequalities and increase social inclusion. There are several ways policymakers can encourage sustainable development so as to reduce inequality and increase social inclusion. Some examples include:

  • Foster inclusive urban development, managing growth and change in ways that reduce pollution
  • Protect natural resources
  • Create sustainable communities and improve quality of life for everyone, including vulnerable people and people with disabilities.
What is social sustainability in business? | Enel X (2024)

FAQs

What is social sustainability in business? | Enel X? ›

Social sustainability works along the same lines as environmental sustainability but focuses on businesses' impact on people instead of on the environment.

What is the meaning of social sustainability? ›

Social sustainability can be defined as specifying and managing both positive and negative impacts of systems, processes, organizations, and activities on people and social life.

What are the 4 pillars of social sustainability? ›

The term sustainability is broadly used to indicate programs, initiatives and actions aimed at the preservation of a particular resource. However, it actually refers to four distinct areas: human, social, economic and environmental – known as the four pillars of sustainability.

What is the business case for social sustainability? ›

In what has become known as the 'business case for Corporate Social Responsibility (CSR)' the pitch is that a company can 'do well by doing good': that is, can perform better financially by attending not only to its core business operations, but also to its responsibilities toward creating a better society.

What are the social issues in sustainable business? ›

For companies, social sustainability issues include problems such as health, safety, diversity, wellness, human rights, equitable labor practices, empowerment, philanthropy, and more.

What is social sustainability in a business? ›

Social sustainability is about things like bringing people together, creating communities and shared experiences that build trust and help promote empowerment.

What are the benefits of social sustainability? ›

Societal benefits:

Society can benefit from this by having access to fair and safe jobs. Reduced inequality and prejudice: Social sustainability aims to reduce disparities, whether financial, racial or gender-related, making the workplace fair for all.

What 3 main areas does social sustainability focus on? ›

Social sustainability involves a focus on the well-being of people and communities. It's about promoting equity, human rights, access to education and health care, and decent work.

What are the 4 C's of sustainability? ›

Segera finds that balance between conservation, community, culture and commerce, and puts the environment at the heart of the development.

What is a simple example of sustainability? ›

Climate action: Acting now to stop global warming. Life below water: Avoiding the use of plastic bags to keep the oceans clean. Life on land: Planting trees to help protect the environment. Responsible consumption and production: Recycling items such as paper, plastic, glass and aluminum.

What is sustainability and social responsibility in business? ›

Corporate Social Responsibility, or CSR, usually refers to a company's commitment to practice environmental and social sustainability and to be good stewards of the environment and the social landscapes in which they operate.

What is a simple definition of sustainability? ›

In 1987, the United Nations Brundtland Commission defined sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.” Today, there are almost 140 developing countries in the world seeking ways of meeting their development needs, but with the ...

Is CSR social sustainability? ›

"Corporate social responsibility", or CSR for short, is about a company's responsibility for society in the sense of sustainable business practices. CSR refers to a company's responsibility for its impact on society.

What is an example of social sustainability? ›

Qualify of Life Social Sustainability

For example, affordable housing, physical & mental medical support, education training opportunities, employment opportunities, access to support, and of course safety and security.

How to create social sustainability? ›

Contribute in other ways to improve the lives of the people they affect, such as by creating decent jobs, goods and services that help meet basic needs, and more inclusive value chains. Make strategic social investments and promote public policies that support social sustainability.

What is the biggest social issue facing businesses today? ›

Last week, we dove headfirst into four social challenges you and your business can start to impact right now.
  • Income inequality.
  • Access to education.
  • Healthcare accessibility.
  • Social justice and human rights.
Jul 4, 2023

Which of the following is an example of social sustainability? ›

In corporations, social sustainability performance issues include human rights, fair labor practices, living conditions, health, safety, wellness, diversity, equity, work-life balance, empowerment, community engagement, philanthropy, volunteerism, and more.

What are the social sustainability ideas? ›

So, here are some sustainable activities and social things to do to meet new people who care about the same causes.
  • Join a beach clean or other clean-up events. ...
  • Find a local Meetup event about sustainability or social issues. ...
  • Join a protest, demonstration, or activist group. ...
  • Visit a sustainable market.
Oct 4, 2023

What are the 4 dimensions of social sustainability? ›

Four dimensions and Principles of Social Sustainability

Quality of life. Equality. Diversity. Social Cohesion.

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