Four key trends impacting the “S” in ESG for organisations

Rising inequality awareness, the wellbeing economy, corporate efforts in ESG and building constructive dialogues are the forces of change that are impacting organisations, according to a new report.

The inaugural State of Social Impact Report highlights the social trends and challenges identified by Australian senior leaders.

The report shows where an effective and coordinated response, from a blend of industry sectors, will have the greatest impact, now and in the long term for Australian citizens.

Mark Jones, CEO and chief storyteller at ImpactInstitute said the report signals growing appetite among business, social sector, and government leaders for stronger partnerships that drive impactful change.

“Social impact leaders are urgently calling for cross-sector collaboration to address immediate cost-of-living pressures and long-term disadvantage,” he said.

“We’re calling on government and industry partners to remain committed to Australia’s first wellbeing framework, Measuring What Matters, as a strategic blueprint for a more equitable and sustainable society.”

Regarding rising inequality awareness, the report noted that the current economic inequality is “significantly” higher today than during the 1980s.

Dr Laura Dixie, director at actuary firm Taylor Fry said during the Social Impact Summit the top 20 percent of income earners in Australia have six times the disposable income of the bottom 20 percent

"This disparity casts a long shadow over Australia, particularly for marginalised communities. We must bridge this gap with immediate collective action to ensure a just future," she said.

The wellbeing economy is an emerging economic paradigm that pursues human and ecological wellbeing as primary markers of progress rather than GDP.

Over the past few years, several national governments have adopted the WE as a framework for policy design and assessing social and economic progress. Such as New Zealand, Scotland and Wales.

Dr. Katherine Trebeck, political economist and co-founder of the Wellbeing Economy Alliance called for a fundamental economic shift to address social issues at their source and foster market equity and individual empowerment.

"Governments must introduce policies and design an economy that delivers social justice on a healthy planet for ourselves and future generations," she said.

In the world of work, the State of Social Impact Report reveals that despite aspirations towards ESG goals, only 40 percent of those surveyed agreed their organisations had a clearly defined purpose geared towards creating social impact.

While there is an apparent appetite for creating long-term, positive change through work, just over a third of respondents felt that their employers created opportunities ‘to a great extent’ for disadvantaged people.

Hugh Mackay AO, speaking at Social Impact Summit 2023, said Australians have never been more connected, yet at the same time never been lonelier and isolated.

"Kindness is in our power even when fondness is not. The deepest sense of life’s meaning arises from our interdependence and willingness to relate to others and respond to their needs,” he ended.