- Social impact is at an all-time low.
- Investors are relaxing ESG requirements.
- The Trump effect in the U.S. will slow down social impact in the corporate world.
- We already generate social impact.
Lately, I keep hearing excuses about how many business leaders are looking for justifications to continue to run their companies as usual, solely to make money.
In a world where companies can no longer limit themselves to maximizing profits without considering their social and environmental impact, leaders must constantly reflect on the purpose and sustainability of their organizations.
Social impact is not a fad, but an imperative change in our economic model. Although this model has generated a lot of value and progress, it needs to be readjusted. An adjustment that involves measuring not only how much is earned, but also how it is achieved.
Here are 10 essential questions that everyone with responsibility in a company or investor should ask themselves to ensure that they are making a positive impact on society. Or, conversely, to recognize whether their growth is based on social inequality and environmental degradation.
1. What is the true purpose of our company and is it aligned with my personal purpose?
Beyond revenue, it is crucial to define the company’s raison d’être and ensure that every strategy and action supports that purpose.
2. Are we measuring our social and environmental impact and does it add value to the company?
You cannot improve what you do not measure. Establishing clear indicators and regularly auditing impact allows us to assess the real contribution of the company beyond financial returns.
3. Is our supply chain ethical and sustainable, and do we have the right partners?
From raw material procurement to product delivery, it is essential to ensure that each link in the chain respects human rights and the environment. Have we really vetted our suppliers and demand responsible practices?
4. How do we impact our local communities and are we upholding social justice?
A company should be an agent of positive change in the communities where it operates, generating decent employment, promoting education and supporting local initiatives. Are we creating real value or simply extracting resources without giving back adequately?
5.Are we fostering a values-based corporate culture and are we taking care of our people?
Internal culture directly influences the way the company interacts with the world. Promoting values such as transparency, inclusion and social responsibility is key, but do we do it actively and visibly?
6. Is our company environmentally responsible and do we contribute to regenerating the planet?
From waste management to energy consumption, companies must minimize their ecological footprint and adopt sustainable practices. Are we really committed to reducing emissions and protecting the environment, or are we only implementing superficial actions?
7. Do we innovate to solve social or environmental problems and do we see social impact as a competitive advantage?
Innovation can be a powerful tool to address global challenges, whether through sustainable products, green technology or inclusive business models. Are we allocating resources to develop solutions to humanity’s greatest challenges?
8.How are we perceived by our customers and employees in terms of social impact? Are we transparent?
A company’s reputation depends on the consistency between its values and its actions. Actively listening to customers and employees is essential, but do we really take their feedback into account and act accordingly?
9. Are we honest in our sustainability communication?
Avoiding greenwashing and communicating honestly about progress and difficulties in terms of social and environmental impact is essential to build trust. Are we willing to admit our failings and publicly commit to improving?
9. How can we continually improve our impact and are we contributing to social justice?
Sustainability and social impact are not fixed goals, but a process of constant improvement. Evaluating and adapting strategies is key to achieving lasting impact. Are we willing to change our practices even when it involves short-term costs?
Answering these questions honestly and taking concrete action can make the difference between a company that simply exists and one that truly transforms the world for the better.
As business leaders, the challenge is not just to generate profits, but to do so in a responsible and sustainable way.
So, ask yourself this last question:
Do you want to lead change or be part of the problem?