How to Incorporate ESG Practices to Support Your Workforce this Labor Day

While Labor Day marks the unofficial end of summer, its origin is much less sunny. The first Monday in September was designated a federal holiday in 1894 after years of demonstrations and strikes by labor unions and workers protesting demanding, abusive and outright dangerous working conditions. In this post-pandemic world, many companies are once again confronted by the workforce, as well as investors, to audit their practices to ensure they’re contributing to a healthy labor market. 

The acronym, ESG (environmental, social, and governance), has grown in popularity over the years as the pressure to improve practices that impact the environment, workforce, and community has increased due to the climate crisis and evolved workplace values among younger generations. Consumers prefer sustainable practices, too. In fact, a recent study found that 75 percent of Gen Z consumers prioritize sustainable practices over the brand name.

Here are a few ways companies can look inward and make concerted efforts to create an enticing and respected workplace for employees, consumers and investors alike. 

Source ethically: Companies must examine supply chains and push for transparency. One way to do this is to identify where materials are manufactured and products are purchased. Are these places that have ethical labor practices? While there are gaps in mapping supply chains, the more organizations push for information and clarity about where their materials and products originate, the closer the world will be to supply chain transparency.  

Values matter: Companies should take the time to define the social issues most important to their organization. 70 percent of workers seek jobs that provide a sense of purpose, according to McKinsey and Co. One way to promote this is to select issues that matter the most to the organization and weave these principles into the company’s culture. This demonstrates to employees a greater purpose behind the organization over the bottom line. 

Clear the air: It’s all hands on deck to ensure our planet is on a regenerative path, and contributing to the planet's health creates a healthier working environment. How does your company contribute to the environment in your community? Consider offering remote-work, hybrid options or public transportation passes so fewer people are on the road. Businesses that must work in an office environment should implement corporate waste reduction practices, like compost services, and keep an eye on what’s really necessary for that supply closet.

Lead by example: Now more than ever, workers expect accountability from their leaders, and trust is a two-way relationship. A healthy working environment needs transparent communication and opportunities for employee input beyond a suggestion box and an occasional town hall meeting.  

Health is wealth: A major component of a healthy labor force is the benefits provided by employers. Inflation has hit workers hard this summer, but companies can help curb the impacts on their employees by auditing their suite of benefits and filling the gaps. Are there additional boosts your company can provide, like flex schedules, remote work or stock options? Periodically examining your company's benefits and scanning available benefit options can ensure your organization is not only competitive in the marketplace but creating a supportive environment for your employees. 

On this Labor Day, and during this era of labor shortages and demand for more inclusive and sustainable operations, companies should take steps to address their ESG impacts to support employees and the communities they comprise. 

Interested in learning more about how Clearyst° is assisting companies in tackling their sustainability initiatives? Learn more at www.clearyst.com.