It seems that over the past few years, a subtle change has occurred in the US. While before, most major decisions and programs were made by government (the New Deal, sending men to the Moon, Civil Rights Movement), now it appears that corporations are drivers for some social change. Frustrated by inaction to realities by government, more corporations are advocating change. For example, earlier this year the Disney Company had many of its tax advantages taken from them by the State of Florida because it came out against education reform concerning LGBTQ people (“Don’t Say Gay” bill). A number of companies put out statements or boycotted the State of Georgia over a restrictive voting law it promulgated.

The “Great Resignation” of the last two years has impacted company values, too. Many employees stuck at home and contemplating their mortality, left their firms for a higher calling. And when many employees fought the return to the office, companies understood that they had to not just pay their staff better but engage them that their work would result in a higher calling. 2021 and 2022 are certainly the years that companies had to re-examine themselves to what they do and treat their employees.

In this time employees got more sophisticated. Years ago people were influenced by just a small number of people (family, close friends, clergy). Now people have access to many more people with more diverse outlooks giving advice on Facebook, LinkedIn, and others. Where people “bought” general bromides thrown out by corporations and their executives, people are now more weary, non-trusting, and willing to seriously listen to alternative opinions. And while workers earlier used to be quite risk averse about losing their jobs, now more workers are willing to chance it, believing they will weather the storm and find (perhaps better) alternatives elsewhere.

It also used to be that a company was an “island”. The company makes a product that people are willing to pay for and does them good and treats their staff, vendors, etc. fairly. All good. That would be perceived as doing the community good. But companies are not islands anymore in many people’s minds, and people are concerned about a company’s influence on the greater good, such as the planet on environmental and climate matters.

So to keep employees and customers more companies are saying “Buy my product” or “Work for us” because we want to make the world a better place. Great! But how can it prove this point? People are a lot more skeptical than they ever were. You need to get away from slogans; you need proof.

The good news is that some companies are moving in that direction, knowing they have a skeptical public and employees, who want a greater say in the direction of their companies. In addition, in the US, the SEC has proposed new standards to force companies to back up their environmental, social, and governance (ESG) claims.

The statements: “We’re working on it” and “It’s important to us” may no longer be acceptable to more people. Companies will have to develop concrete goals with timelines and measure progress to back up their claims. And goals, lofty or not, need to be directly under the purview of senior management, not given off to middle management who may not be motivated.

Change is hard to measure and comprehend. However, I think one of the big changes that came out of the pandemic is the importance of the greater meaning of work, the need to satisfy the growing curiosity of a more knowledgeable consumer and employee class, and the importance of being upfront about goals and demonstrating that they are real and progress is being made.

CCES has the experts to help you develop and implement environmental and climate goals, show real progress, and communicate these to your stakeholders. Contact us today at karell@CCESworld.com or at 914-584-6720.