Jennifer Gaster explores how UK businesses are embedding social purpose into their operations, integrating social purpose into the employee value proposition (EVP) to attract and retain top talent.
In recent years, the corporate landscape in the UK has witnessed a profound shift. Organisations are increasingly embedding social purpose into their core operations, driven by the recognition that businesses can and should play a pivotal role in addressing societal and environmental challenges. This evolution reflects a broader trend where companies are no longer judged solely on their financial performance but also on their social and ethical contributions. Human Resources (HR) departments are at the forefront of this transformation, tasked with integrating social purpose into the employee value proposition (EVP) to attract, engage, and retain top talent.
The Emergence of Social Purpose
The concept of social purpose goes beyond corporate social responsibility (CSR). It involves a deep commitment to making a positive impact on society and the environment, aligning business strategies with the broader goal of creating shared value. In the UK, this movement has gained momentum due to several factors:
Consumer Expectations: Today’s consumers, particularly millennials and Gen Z, prefer brands that are socially responsible. They support companies that demonstrate a genuine commitment to sustainability and ethical practices.
Employee Preferences: Potential and current employees increasingly seek employers whose values align with their own. Purpose-driven companies tend to attract individuals who are passionate about making a difference, thereby enhancing job satisfaction and retention rates.
Regulatory Pressure: The UK government has introduced various regulations aimed at promoting sustainability and corporate accountability. Organisations are compelled to align with these frameworks, further embedding social purpose into their operations.
Competitive Advantage: Companies with a strong social purpose often enjoy enhanced brand loyalty, greater customer trust, and a more engaged workforce, all of which contribute to a sustainable competitive advantage.
Legislative Drivers of Social Purpose
Alongside the Procurement Act, there are several upcoming legislative changes in the UK are poised to impact how organisations integrate social purpose into their operations:
1. The Environment Act 2021: This legislation sets legally binding targets for improving air quality, water, and biodiversity, and reducing waste. Companies will be required to comply with stricter environmental standards, pushing them to adopt more sustainable practices.
2. The Corporate Governance Code: The Financial Reporting Council’s UK Corporate Governance Code has been revised to emphasize the importance of environmental, social, and governance (ESG) considerations. Companies are expected to report on their ESG strategies and the impact on their business operations, encouraging a stronger focus on social purpose.
3. The Modern Slavery Act 2015 (Amendments): Proposed amendments to the Modern Slavery Act aim to enhance transparency in supply chains. Companies will need to provide more detailed disclosures about the steps they are taking to combat modern slavery, reinforcing ethical labour practices as part of their social purpose.
4. Climate-Related Financial Disclosures: The UK has mandated climate-related financial disclosures aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. This requires companies to disclose their climate-related risks and opportunities, integrating climate considerations into their strategic planning.
The Role of HR in Promoting Social Purpose
HR departments play a crucial role in promoting and integrating social purpose within organisations. Here are key strategies HR can employ to enhance the EVP:
Articulate the Company’s Social Purpose: HR should clearly define and communicate the organisation’s social purpose, ensuring it is integrated into the company’s mission, vision, and values. This can be done through internal communications, branding materials, and onboarding processes.
Incorporate Purpose into Recruitment: Highlight the company’s social initiatives and ethical commitments in job postings, career pages, and during interviews. This not only attracts candidates who are aligned with the company’s values but also sets expectations from the outset.
Develop Purpose-Driven Employee Programs: Create and promote programs that allow employees to engage in social and environmental initiatives. This could include volunteer opportunities, sustainability projects, or partnerships with non-profits. Encouraging employee participation in these programs can foster a sense of belonging and purpose.
Learning and Development: Offer training programs that educate employees about the importance of social purpose and how they can contribute. This could include workshops on sustainability practices, ethical decision-making, and community engagement.
Recognition and Rewards: Recognise and reward employees who actively contribute to the company’s social purpose initiatives. This can be through awards, bonuses, or public acknowledgment, reinforcing the value placed on social contributions.
Leadership Commitment: Ensure that company leaders visibly support and participate in social purpose initiatives. Leadership involvement can inspire employees and demonstrate the organisation’s genuine commitment to its social goals.
Employee Feedback and Inclusion: Regularly seek feedback from employees on social purpose initiatives and involve them in decision-making processes. This inclusivity can lead to more effective and meaningful programs, as employees feel their voices are heard and valued.
Transparent Reporting: Maintain transparency by regularly reporting on the company’s social and environmental impact. This can be through sustainability reports, social media updates, and internal communications. Transparency builds trust and accountability, both within the organisation and with external stakeholders.
Social Purpose is here to stay
The rise of social purpose within UK organisations represents a significant shift in how businesses operate and define success. HR departments have a critical role in embedding this purpose into the company’s EVP, ensuring it resonates with both current and potential employees. By articulating the company’s social purpose, integrating it into recruitment and development programs, and fostering an inclusive and transparent culture, HR can enhance the organisation’s ability to attract and retain talent while contributing to a better world.
The forthcoming legislative changes will further propel this movement, ensuring that social purpose remains a cornerstone of corporate strategy in the UK. As more companies embrace this paradigm, the intersection of business success and social impact will become increasingly prominent, paving the way for a more sustainable and equitable future.
Those that have already implemented social purpose such as Unilever will no doubt gain competitive advantage.
I’d be delighted to discuss how social purpose is shaping your business, drop me an email at jennifer.gaster@hrheads.co.uk
