Looking Ahead to 2024 - Leading for Sustainability

There is no doubt that 2024 will usher in more rapid technological changes, continued political upheaval, and new pressures to demonstrate positive impact on critical environmental and social issues. Leaders will find themselves navigating a dynamic landscape where new challenges and opportunities demand a fresh perspective. While strength and competence are often the default approach, modern CEOs, leaders and founders should prepare to embrace a new model.

• Trust and Transparency. Today there is perhaps no greater currency than trust. It is hard to earn, and easy to lose. And, trust in corporate and nonprofit leaders is faltering. This means we need more transparency not less, integrity and consistency in values and decision-making, and an openness to ideas from those you lead. Listening is the essential ingredient. Listen first, and you will create trust in what you say when you say it. 

• Humanity and Vulnerability. Everyone (let’s admit it) has some anxiety about the breakneck pace of technological advancements. The increasing emphasis on technology in our lives is a given, but people are still just people. We want to experience connection and compassion. Vulnerability, humility and emotional intelligence are the leadership qualities that matter now. Don’t be afraid to show people that you are, in fact, only human.

• Diversity and Inclusion. Too many leaders and organizations made well intentioned but hollow commitments to diversity and inclusion in 2020. These are not merely buzzwords, but vital components of any organization that wants to grow and thrive. Today’s leaders must embody diversity and inclusion in all their actions. You set the tone with the people you hire and promote, the partnerships you create, and the communities you engage.

• Social Impact and Sustainability. Despite the headwinds, sustainability, social impact and ESG as a framework to measure corporate action are here to stay. Employees and consumers have made their voices clear on this topic. The stakes have never been higher for leaders. Those who embrace social action as a critical component of the business strategy and build it in to operations will be rewarded through better financial performance.

• Adaptability and Innovation. As the age-old adage goes, the only constant is change. Leaders who are ready to disrupt their own beliefs and strategies, and create environments that encourage and reward new ideas are better positioned for resilience, relevance and revenue. Flexibility does not mean you lack clarity, it means you are paying attention and willing to adjust your strategy to address needs in the marketplace.  

Although we move forward into an uncertain future, opportunities abound for leaders who are willing to lead with vision, empathy and an unwavering commitment to a more sustainable and inclusive future.

Social Innovation and the Three Rs – Resilience, Relevance and Revenue

As we approach the final months of 2023, I’ve been reflecting on all that has changed since the early days of Covid-19. Most people and organizations have turned the page on the pandemic era, but the seismic shifts in business and in life that were a result are here to stay. One trend that was gaining momentum before the pandemic, and has certainly picked up steam since is the role of social innovation as a core value and operating imperative.

Today businesses, nonprofits, and governments are grappling with the 3 Rs – Resilience, Relevance and Revenue. In a world of rapid change, complex global challenges, and constant uncertainty, organizations must answer the questions of how do we build resilience, how do we stay relevant, and how do we grow revenue? I believe social innovation is the key.

Building Resilience

Today, resilience is more than the ability to adjust to or recover from challenges, it is about bouncing forward stronger and more adaptable. Organizations that incorporate social innovation as a core practice, take broader social and environmental challenges into account as they develop new products and services, and design internal systems and processes. Take Intel for example. The company launched the Women In Science STEAM Camps that provide middle-school girls with hands-on technology experiences. Over the long-term, these programs are helping to develop a pipeline of diverse talent that position the company to respond nimbly to the needs of tomorrow’s tech jobs.

Staying Relevant

Social impact and sustainability matter to the consumer, and impact continues to influence purchasing decisions. PWC’s most recent Consumer Insights Survey reveals that 8 out of 10 consumers will pay more for a sustainable product. Organizations can cement their relevance by strategically identifying and responding to social needs through their products and services.  Adidas has partnered with Parley for the Oceans, a global environmental nonprofit, to intercept and retrieve ocean plastic and convert it into high-performance materials for shoes. With their Primeblue yarn, they are creating products that address a critical environmental challenge, while responding to the types of products consumers want to buy.

Growing Revenue

Applying social innovation methods to your strategy allows organizations to identify untapped markets or develop niche markets that help solve a social challenge while also leading to new revenue. Through Start Path In Solidarity, Mastercard is investing in underrepresented founders in fintech to help close the racial wealth and opportunity gap. At the same time, Mastercard is gaining access to commercial engagements that can grow revenue streams, diversify their business, and secure new customers.

Creative strategies to address and manage resilience, relevance and revenue have never been more important. By incorporating social innovation practices into core operations, organizations improve their chances for long-term success.

Unions, AI and a New Role for Corporate Social Responsibility

Have you been paying attention, like I have, to the union strikes that are underway in the U.S. these days? The Writers Guild of America and SAG-AFTRA hit the picket lines this Spring, and as of this writing, the United Auto Workers have been on strike for nearly a week, with no immediate end in sight. As always, better pay and benefits are at the core, but there is something else at play, too. 

The increasing interest in unionizing – Starbucks, REI – and the frequency of union strikes or the threat of strikes – Pilots, Healthcare workers, UPS – in recent years are emblematic of the broader challenges faced by the American workforce in an era of rapid technological advancement. 

Automation and artificial intelligence are reshaping industries and impacting the power and money dynamics between employer and employee. What if these changes demand that we reimagine corporate social responsibility (CSR) and environmental, social and governance (ESG) initiatives as well, to more effectively bridge the interests of both company and worker as we navigate our new AI-powered world?

Fair Wages Are a Corporate Social Responsibility

The 2023 Just Company Rankings produced by Just Capital, revealed that the public considers companies that pay employees a living wage as the top ranked behavior of a “Just Company”. Fair wages and benefits are table stakes but are not typically considered a component of a company's CSR initiatives. As we reckon with the new and evolving workplace, companies have an opportunity to think more expansively about how fair wages and benefits for employees can sit at the center of their socially responsible business strategy.

Preparing the Workforce of Tomorrow

In this era of rapid change, companies recognize the need to invest in reskilling and retraining programs for their workforce. By helping employees acquire new skills and adapt to changing job roles – for example, learning how to work side-by-side with AI – companies demonstrate their commitment to employee well-being and job security, while also ensuring that the business has the critical skills needed to maintain operations. But what if companies thought about the talent pipeline more broadly? More than reskilling and retraining current employees, companies can invest in talent development beyond the corporate walls. By investing in education and skills-building in the broader community as strategic business priority, companies can set the stage for longer-term value creation by building the workforce of tomorrow now.

The New Company Town

Navigating the complexity of digital transformation, artificial intelligence and new models of remote and hybrid work can be challenging for companies and employees. People want community, connection and a sense of purpose, and smart companies are committed to providing it according to Benevity’s 2023 State of Corporate Purpose Report. It is time for a new version of the company town. A unified program of online tools and real-life interactions, the new company town can provide access to support that protects the health and safety of employees and their families, opportunities for diverse stakeholders to participate in community giving that addresses real community needs, and pathways to local volunteering to build relationships and give back. Building the new virtual company town puts community and social responsibility at the heart of the business.

Conclusion

The SAG-AFTRA and UAW strikes, and the broader challenges posed by AI and technological progress underscore the enduring importance of corporate social responsibility. As tech continues to shape industries, corporate social responsibility and ESG must also evolve to better address corporate goals, employee rights and dignity, and the shared commitment to creating impact.

The Promising Role of AI in Philanthropy

Like many of us (most of us?), I have been thinking about Artificial Intelligence a lot these days. Rapid technological advancements powered by AI are everywhere, impacting for-profit companies and nonprofit organizations in equal measure. There are plenty of opportunities for nonprofits to use AI to strengthen their programs and fundraising but, what about philanthropy, corporate giving and ESG? How is AI bolstering the way we support and address the social and environmental needs in our communities?

Data Analysis for Targeted Impact

AI can fundamentally change how philanthropy operates, by enhancing efficiency, decision-making and impact assessment. Processing vast amounts of data to identify trends, needs and opportunities will enable funders and donors, in partnership with impact organizations, to make more informed decisions about where their resources can have the greatest impact. This data analysis can also identify previously unseen causality and connections to reveal novel approaches that can drive real social change in persistent areas of need and challenge.

Any-time Engagement

No philanthropic decision is made without learning more about a potential grantee, and effective donor and nonprofit engagement takes time and resources. AI-powered chatbots can make it easier for donors to engage with impact organizations, by asking questions, exploring data, and even donating. These engagements can happen in real-time, any-time.  As the tools evolve, a more personalized experience that provides each funder with engagement that is tailored to their needs can help accelerate the giving process and aid faster decision-making.

Advancing AI for “Good”

While AI presents opportunities to enhance and evolve philanthropy, it also raises important ethical questions. Issues such as data privacy, algorithmic bias, and the effects of automation on human involvement in decision-making are real. Philanthropy can, and must, support research and initiatives that address these risks, promote transparency, and establish ethical guidelines for AI applications. By taking an active role, funders, donors and impact organizations can help shape the trajectory of AI and how it can positively impact our world.

There is no doubt that AI is poised to revolutionize philanthropy by offering new ways to identify, engage and support causes that matter. By leveraging AI-driven tools we can make significant progress toward greater social and environmental sustainability. At the same time, we must address the ethical concerns so that we can fully harness the power of AI for good.

The Power of Social Impact to Engage Audiences

Last year marked the dawn of stakeholder capitalism as the world’s largest, most powerful businesses acknowledged the vital importance of their employees, investors, suppliers and ecosystem partners.

These commitments are more important now than ever amid the COVID-19 crisis. Employees are turning to their employers for reliable, accurate information; the public is turning to American businesses to step up and address the crisis; and all stakeholders expect CEOs to stay highly engaged during these turbulent times.

As businesses continue to keep a close pulse on concerns, values and needs of their stakeholders, social impact will undoubtedly be at the top of every forward-looking company’s agenda. Crises like COVID-19 underscore how interconnected the world’s needs and the response to those needs are, which is why it is imperative for companies to boost their commitments to society — not only to help their communities but also to ensure their own corporate vitality, too.

Today, companies must fully integrate social impact into their long-term corporate strategy and ensure these efforts are clearly communicated to each and every stakeholder. Read the full article here.