{"id":340,"date":"2022-12-13T01:06:16","date_gmt":"2022-12-13T01:06:16","guid":{"rendered":"https:\/\/divi.ameravant.com\/nonprofitkinect\/?p=340"},"modified":"2023-01-29T19:47:28","modified_gmt":"2023-01-29T19:47:28","slug":"nonprofits-and-businesses-partner-to-enhance-our-community-through-intentional-esg-practices","status":"publish","type":"post","link":"https:\/\/nonprofitkinect.org\/nonprofits-and-businesses-partner-to-enhance-our-community-through-intentional-esg-practices\/","title":{"rendered":"Nonprofits and Businesses Partner to Enhance Our Community Through Intentional ESG Practices"},"content":{"rendered":"\n[et_pb_section fb_built=”1″ _builder_version=”4.19.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.19.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.19.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.19.5″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]
But today is a different story. Many feel that a strong ESG strategy is a business imperative. It appears that having started as a way of enhancing a firm\u2019s reputation, ESG has quickly risen to an accepted way of measuring a company\u2019s financial performance as well.<\/p>\n
According to\u00a0<\/span>Wall Street Journal<\/a>\u00a0<\/span>writer, Charley Grant, \u201cIt seems the modern corporate mission statement could use an update:\u00a0<\/span>Do well by doing good\u2014or else<\/em>. Earning the perception of good corporate citizenship, in the form of environmental, social and governance, is no longer optional for the modern executive.\u201d Grant says that the ESG movement is \u201ca framework that calls for investors to consider a company\u2019s overall impact on the world beyond its financial returns. The trend shows no signs of slowing down.\u201d<\/p>\n Similarly, Wall Street Journal writer, Barbara Chai, predicts that, \u201cIncreasingly, consumers will demand that companies protect the health and well-being of society and the environment . . . consumers will take social and environmental issues more seriously and will seek out businesses that make the world cleaner, safer and more equitable.\u201d Chai claims that, \u201cBusiness can be a force for good, and that business needs to be part of making the world a better place.\u201d<\/p>\n Thirteen years ago, the doctoral research for my dissertation, studying the cross-industry relationship between business and nonprofits, showed that 72% of the American public would prefer to do business with companies that are actively engaged in making the world a better place.<\/p>\n But experts in the field caution that the success of the application of ESG boils down to one core theme: authenticity. Paul Knopp, writer for\u00a0<\/span>Chief Executive Magazine<\/a>, says that \u201cfor an ESG plan to resonate, it needs to be specifically tailored to a company\u2019s values and approach to business. A recent study shows that nowadays 77 percent of the public is looking to business to address societal challenges.\u201d<\/p>\n Even though the concept of ESG has been primarily a corporate practice, nonprofits are finding benefits in similar activities. Businesses are also realizing that nonprofits may hold the key to their effectiveness in implementing their ESG practices.<\/p>\n The popular\u00a0<\/span>Board Effect<\/a>\u00a0<\/span>recommends that \u201cembracing ESG is more than a matter of\u00a0ethics<\/a>\u00a0and morals. Investors and donors are sure to take notice of your efforts to promote ESG principles because they consider it to be part of good business practices that lead to profitability.\u201d They suggest that nonprofits \u201copen up the discussion about ESG with investors, employees, and members. Make a point to incorporate ESG goals and metrics into strategic planning efforts. Make plans to weave ESG principles into the nonprofit\u2019s story so you can share it easily with others during your fundraising efforts.\u201d<\/p>\n>> Many nonprofits are embracing the principles and practices of ESG.<\/h2>\n