Creating Societal Value

In the Pathfinder stage, creating enterprise societal value is about translating words into actions. This may require changes to the company’s products, services and policies.

What You Do

1. Ensure core business commitment.
   • A societal value strategy will not be authentic if the core business products and services are inconsistent with its promise. Business leaders must be engaged to examine products and services, and employees must be focused on delivering societal value through all their touchpoints. This can happen as a C-Suite initiative, as a task force or council, or through broader outreach to the workforce (e.g. focus groups, jams, surveys).
   • Example: Philips expresses its commitment through descriptions of the societal value created by each product it makes and sells.
2. Set and report ESG/sustainability goals.
   • To satisfy ratings agencies, your organization’s ESG programs should have quantified goals and timelines for progress, as well as a management system to meet reporting standards established by SASB or your industry’s trade associations. Communications will assist in reporting these results, ensuring that those reports – whether separate or as part of the company’s annual report – are consistent with overall brand and strategy messaging.
3. Create a management system for corporate policies and corporate activism.
   • A formal process at the C-Suite level is needed to examine all corporate policies, including governance, within the context of environmental and societal impact, to determine how they contribute to your enterprise’s societal and sustainability goals. The CCO will not “own” this but can and should catalyze it with his/her peers.
   • As part of this, actively manage company activism. Anticipate issues and decide through this formal policy process whether, where and when to take positions and/or speak out on political or societal issues.
   • Example: Southwest Airlines has developed an issues rating system that captures input from various stakeholders on the risks and benefits of engaging on a particular issue. The resulting score – red, yellow or green – indicates whether or not action will be taken.
   • Not every company will want to take these kinds of proactive public stands and those that do will want to choose their issues carefully, through a process that considers corporate brand, policy interests and stakeholder concerns, with all important internal decision makers included. Where appropriate, include employees and expert groups in the decision-making process.