Sunday, June 4, 2023

Business Transformation: From Economic Profits to Corporate Activism

Environment And concerns for the health of the planet have become important issues in the present scenario. Climate change is a present and future problem in which all governmental actors and organizations must act jointly to reduce the adverse effects caused by environmental management in recent centuries.

Given the current context of urgency, the concept of corporate activism was born, defined by the United Nations Global Compact in Spain as “the movement by which companies position themselves as agents of positive change on issues they those belonging to society and interest groups”. To do this, the actions taken by companies must meet ESG criteria, that is, they must have an impact that benefits the environment, society and the economy.

In legislative matters, the declaration of the World Economic Forum (2020) served to reach a common agreement of all social and business leaders to agree on the following: “Companies aim to cooperate with all their stakeholders in the creation of shared value And sustainably. By making it, companies comply not only with their shareholders, but with all their stakeholders: employees, customers, suppliers, local communities and society in general.

Corporate activism, a flourishing practice

In addition to regulation, more and more companies are betting on more sustainable business models. Companies are increasingly recognizing the need to align their objectives and actions with global sustainability, implement concrete measures to reduce their environmental footprint, promote gender equality, respect human rights, and contribute to the well-being of the communities in which they serve. Recognizing in which they work. Undoubtedly, the adoption of sustainable practices and the integration of the United Nations’ Sustainable Development Goals have become key elements of business strategies.

This is confirmed by the IX Report on the Social Impact of Companies published by Deloitte and Fundación Ceres, which confirms that since the pandemic, businesses have increased and maintained their commitment to sustainability and that social investment has increased by approx. There is an increase of 3%. Spanish companies will invest a total of 1,533.5 million euros in social projects in 2021, a 17% increase on the previous year. Investments by companies focused on social welfare and health (14%) and equality (13%). Companies developed 4,200 social projects, of which 55% act as driving forces for change aimed at health, wellness and quality education that improve social quality standards. Furthermore, the SpainSIF study Sustainable and Responsible Investing in Spain 2021 shows that the integration of ESG policies (45%) is the most used business strategy by companies in Spain.

Corporate activism promoted by companies should aim to be positive and be beneficial to achieve the 2030 Agenda. But, according to the United Nations, not all departments of organizations implement internal training efforts on sustainable development. According to the report Collective Leadership in the 2030 Agenda: A Decade for Action, knowledge about the SDGs is uneven between departments, as are areas such as regulatory compliance and innovation that achieve low results. On the other hand, departments such as Sustainability, Marketing and Management and the Board of Directors have stood out for their high results. Furthermore, in order to achieve sustainable objectives, it is necessary to establish alliances with different interest groups: governments, NGOs, educational institutions or the community.

While corporate activism continues to gain a presence within business objectives and is reflected in measures focused on sustainable activity that respects the environment, these actions are still insufficient to reverse the effects of climate change that continue to affect the planet. Are.

The rise of corporate activism is a promising sign on the path to a sustainable future. If companies continue to lead change and take responsibility for their impact on the planet, we can expect greater environmental protection, greater social equity and more sustainable economic growth. Corporate activism has the potential to be a transformative force that drives the sustainability of the planet, but it depends on the willingness and authenticity of the companies to make it happen.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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