The 2015 Volkswagen emissions scandal serves as a stark reminder of the consequences companies face when environmental considerations are neglected. The German auto giant’s deliberate deception shattered consumer trust, resulting in boycotts, plummeting sales and a blemish on the brand’s reputation.
Similar ethical lapses have plagued other global brands. Swedish retail giant H&M has faced scrutiny for its labour practices, while the ubiquitous Nestlé has been criticised for its water extraction practices in developing countries.
Today’s consumers are more discerning than ever. They hold brands accountable for their entire ecosystem—not just the products themselves, but also the actions of their parent companies. Any environmental, social, or governance (ESG) misstep can have a significant financial impact.
This conscientiousness extends beyond the realm of consumers. Today’s workforce is equally selective. The talent pool increasingly seeks employers who prioritise responsible business practices. 2021 saw Amazon employees raise their voices on environmental concerns and worker treatment, even forming a climate activist group. While mass job-offer rejections may not be commonplace yet, it underscores the growing importance of ESG for employee engagement.
The cover story of this issue dives deeper into this critical topic. It explores how ESG principles impact the workforce and shape employee value proposition. It also highlights the crucial role HR plays in driving the ESG agenda from a leadership perspective.
Happy and insightful reading!