Leadership, sustainability, and social justice

It’s a game-changing time to be in corporate citizenship, the next two decades could be humanity’s most important. Delivering a just, green transition is a mammoth task and an existential threat to the billions or trillions of potential lives of our future descendants. In the corporate context, social purpose is redefining organizational drive. McKinsey states only 7% of Fortune 500 CEOs believe their companies should “mainly focus on making profits and not be distracted by social goals.” In 2022 Harvard Business Review stated that 82% of employees in organizations of all sizes, feel that purpose is important but only 42% believe their organizations drive impact. In the UK in 2021, 51% of FTSE 100 companies included ESG measures in executives’ annual bonus requirements.

The strategic positioning of Corporate Citizenship roles, notably their departmental reporting lines, their capacity to deliver on ROI² (Return on Investment and Impact), and the diversity and adaptability of leadership profiles, significantly influence the effectiveness of corporate sustainability and social justice initiatives. I tend to prefer using corporate citizenship (CC) to corporate social responsibility/CSR professionals when describing these roles as I think we’ve gotten to a point where CSR has evolved to be multi-faceted. The prowess of neo-generalists in these roles, especially at the director and C-suite levels, underscores the importance of comprehensive skill sets and stakeholder management.

In today's rapidly evolving business landscape, the integration of sustainability, social justice, and social impact into corporate strategies has transitioned from a discretionary practice to a strategic imperative. This shift reflects a broader societal demand for corporations to not only generate financial returns but also to actively contribute to the welfare of the communities they serve.

Strategic positioning of CC roles and their departmental impact

Central to corporate citizenship is the emergence and strategic positioning of roles dedicated to Environmental, Social, and Governance (ESG), Sustainability, Equity, Diversity, and Inclusion (EDI). These roles, varying in their reporting lines epitomize the multifaceted approach corporations are adopting to address complex societal challenges. Here are some ways different departments are playing their part:

Finance Leaders in CC Roles: Finance leaders in CC roles can effectively align CSR investments with financial performance indicators. They are skilled in cost-benefit analysis and can ensure that initiatives are not only impactful but also financially sustainable. These leaders often focus on transparency and ROI from CC activities, incorporating financial rigor into social projects. Their expertise helps in quantifying the financial impact of CC initiatives, appealing to stakeholders focused on fiscal health and long-term profitability.

Legal Leaders in CC Roles: Legal experts in CC roles ensure that all CC activities comply with regulatory requirements and ethical standards. This is crucial in industries that are heavily regulated or where legal scrutiny is intense. Legal leaders contribute by navigating complex compliance landscapes and by spearheading initiatives that promote corporate governance and ethical business practices. Their involvement is critical in maintaining the integrity and legality of corporate impact activities, thereby protecting the company’s reputation.

Marketing Leaders in CC Roles: Marketing professionals leverage CC initiatives to boost brand image and consumer engagement. They align CC messages with consumer expectations and market trends, using CC as a tool for brand differentiation. Marketing leaders in CC roles are instrumental in communicating the value of CC initiatives to the public and internal stakeholders. They can creatively package CC efforts to resonate with the target audience, enhancing public relations and brand loyalty.

HR Leaders in CC Roles: HR leaders focus on employee-related aspects of CC, such as diversity and inclusion, employee well-being, and engagement. These initiatives directly contribute to employee satisfaction and retention, aligning closely with HR’s goals. HR professionals ensure that CC initiatives are embedded in the company culture and that employees are actively participating in these initiatives. Their strategies often include employee volunteer programs, training, and development focused on social responsibility.

The synergy between the diverse backgrounds of CC leaders and their departmental goals enhances the effectiveness of CC strategies.

The crucial role of neo-generalists

A neo-generalist is someone who maintains a broad skill set and knowledge base across multiple disciplines, yet possesses the ability to dive deep into specific areas when required. Within the context of Corporate Citizenship (CC), neo-generalists play a crucial role due to their adaptability and comprehensive understanding of complex stakeholder landscapes. They are adept at bridging diverse professional domains and can integrate various perspectives into cohesive strategies that address multifaceted social, environmental, and economic challenges. This includes:

Interdepartmental Collaboration: Neo-generalists facilitate collaboration across departments, ensuring that CC initiatives are aligned with both organizational goals and societal expectations. Their ability to speak the language of different business functions—from marketing to finance—helps them secure buy-in and resources for their initiatives.

Strategy Integration: They are particularly skilled at integrating CC strategies with core business operations, ensuring that sustainability and social responsibility are not siloed but embedded within the broader business strategy.

Crisis Management: Their versatile skill set also equips them to manage crises effectively, turning challenges into opportunities for enhancing corporate reputation and stakeholder trust.

Examples of Neo-Generalists in Action: Unilever’s Paul Polman & Sheryl Sandberg at Meta:

Polman exemplified the neo-generalist approach during his tenure as CEO. He steered Unilever with a vision that combined sustainability with business growth, leading to the pioneering Unilever Sustainable Living Plan. Polman’s ability to navigate complex global stakeholder landscapes was crucial in aligning the multinational’s business practices with broader social and environmental goals, significantly enhancing its global impact and reputation.

As COO, Sandberg has utilized her extensive background in technology, business, and philanthropy to drive Facebook’s CC efforts. Her leadership in launching and scaling Facebook’s corporate social initiatives demonstrates how neo-generalists can leverage their diverse expertise to foster impactful social changes while reinforcing business objectives.

The neo-generalists, thus the vanguard of these cross-disciplinary efforts, embody the adaptability and broad-based expertise necessary to navigate and bridge these diverse corporate functions.

Enhancing ROI² through strategic positioning and leadership

The strategic positioning of CC roles within different departments—ESG in Legal, Sustainability in Finance or COO, and EDI in Marketing or HR—plays a pivotal role in enhancing ROI². Each positioning aligns with departmental strengths and goals, ensuring that corporate impact initiatives not only meet business objectives but also contribute positively to broader societal outcomes.

ROI² Impact in ESG: These initiatives, when led through a legal lens, ensure that ESG practices contribute positively to the company's profitability by reducing costs associated with non-compliance and by safeguarding the company’s reputation, thereby indirectly boosting revenue through increased trust and investor confidence.

ROI² Impact in Sustainability: The integration of sustainability initiatives within the finance or COO’s purview ensures that these efforts are not only environmentally beneficial but also economically advantageous, enhancing the company's financial stability and growth prospects through strategic cost management and innovative product offerings.

ROI² Impact in HR/Marketing: By enhancing brand loyalty and fostering a diverse workplace, EDI initiatives contribute significantly to the company’s overall performance. This strategic focus not only attracts and retains customers but also improves employee efficiency and innovation, driving better financial results and creating a more substantial social impact.

I call upon corporate leaders to reassess the strategic placement of Corporate Citizenship roles and consider the broader implications of their decisions. By fostering environments where sustainability and social justice are not peripheral concerns but central to business strategy, companies can unlock profound societal and environmental impacts alongside robust business outcomes. The corporate changemakers of today are not only defining their legacies but are also setting the blueprint for the sustainable and equitable businesses of tomorrow.

Hopefully, I have given you some food for thought to spark a broader dialogue and a call to action: to strategically harness the power of leadership, to innovate responsibly, and to think beyond the immediate to the impact that spans generations.