People At the Core: Harnessing Social Sustainability for Business Growth
Think of a talented orchestra, where each musician plays a vital role in creating a harmonious piece of music. The conductor, standing at the front, directs the ensemble, ensuring every instrument is in tune, every note is played at the right time, and every musician works together as one cohesive unit. If one section of the orchestra, say, the violins, plays out of sync, it disrupts the entire performance. If the brass section lacks support or the percussion is ignored, the melody falls apart, no matter how talented the individual musicians may be.
In this orchestra, the success of the performance depends not just on the skill of each individual musician, but on how well they work together, how well they understand their role within the larger piece, and how well the conductor coordinates the efforts. It’s the delicate balance of each part that creates the symphony, where every note matters, and every musician’s contribution is vital. This is exactly how businesses should approach social sustainability. While companies may focus on the prominent aspects of business—like financial performance or market share—true, sustainable success comes from ensuring that every part of the business ecosystem is in harmony. The people within the organisation, the communities they serve, and the wider stakeholders are like the individual musicians in the orchestra. When businesses treat people with the same importance as they do their profits, and when they prioritise social sustainability, they create an environment where everyone can contribute to a collective success.
In Kenya, where communities are the lifeblood of business and innovation, people-centred practices are not just ethical; they are smart business strategies. Companies that prioritise social sustainability foster trust, create strong employee loyalty, and build resilient communities that drive growth. Yet, despite the clear benefits, many businesses still overlook the power of social sustainability as a core driver of success. The question remains: how can businesses harness social sustainability to not only uplift individuals but also fuel long-term growth and prosperity?
This article delves into how businesses can place people at the core of their operations, ensuring that social sustainability becomes a fundamental part of their growth strategy. By focusing on people, companies don’t just build better brands—they build stronger, more connected communities that become catalysts for collective success.
Practitioners’ Guidance
Reflecting on the RBC Susty Dialogue Series IV, held on November 6th, 2024, at the Baraza Media Lab, the event explored the theme, ‘Social Sustainability – People Matter.’ Hosted by Responsible Business Consulting, the evening provided a platform for insights on embedding people-centred practices across businesses, emphasising the shared responsibility in cultivating equitable, resilient communities.
In her opening remarks, moderator Susan Njoroge framed the dialogue around the “5 Ps” of sustainable development: People, Partnership, Peace, Prosperity, and Planet, underscoring the integral role of people in achieving a balanced approach to growth. “It’s not just about profits,” Susan emphasised, referencing the UN’s “Pact for the Future,” which aligns global leaders around humanity-centred progress. Participants from diverse sectors; from large corporations to grassroots NGOs, joined to discuss strategies for fostering a more inclusive business landscape.
The event was guided by a central question: How do businesses champion people and communities? Panellists, including Lucy Muigai from B Lab Africa, John Mwendwa from Coca-Cola Beverages Kenya, and Dr. Yusuf Saleh from Kenya’s Business Registration Service, addressed issues ranging from employee welfare and equitable wages to transparent governance and community engagement. Through dynamic breakout sessions, attendees collaboratively identified solutions for integrating social sustainability, valuing human dignity, and bringing youth voices into corporate decision-making.
“One of the key challenges is acceptance; both from leadership and employees. Many of these frameworks or guidelines require a shift in perspective and operations… People need to be willing to change their thinking and practices,” said Dr. Yusuf Saleh (Deputy Director of Human Resource Management & Administration, Business Registration Service.)
“Social sustainability is so much more than just looking at a balance sheet… True social sustainability means examining every layer of impact a company has on its people, communities, and the planet.” Stated John Mwendwa (Public Affairs, Communications and Sustainability Director, Coca-Cola Beverages Kenya.)
“Today, consumer awareness is rising fast, both locally and globally…Consumers want proof that companies can trace their actions and ensure that suppliers are held to high standards as well,” noted Lucy Muigai (Chief Executive Officer, B Lab Africa.)
This highlights the fundamental need for cultural shift within organisations to successfully adopt social responsibility practises.
FUNDAMENTAL PREPARATIONS THAT CAN NURTURE SUSTAINABLE BUSINESS GROWTH
Imagine a tree, deeply rooted in the soil, drawing strength from its foundation. It’s only by nurturing those roots that the tree can flourish, grow, and offer shade, fruit, and oxygen to the world around it. For businesses, integrating social sustainability is much the same—success lies in first developing strong, healthy roots that support long-term growth and impact. Before a business dives into community projects, engages young people in strategy, or reshapes policies to foster equity, there are fundamental preparations that can nurture sustainable growth. Here’s how to get rooted in social responsibility:
1. Clarify the Company’s Purpose and Values
Before engaging in social initiatives, businesses must have a well-defined purpose and set of core values. Clarifying these values helps ensure that future social responsibility actions align with the company’s mission and ethical standards.
2. Evaluate Current Social Impact
Conduct an assessment of current business practices to understand the company’s existing social impact. This includes reviewing how operations affect employees, communities, suppliers, and other stakeholders.
3. Define Social Responsibility Goals
Establish clear, long-term social responsibility goals that align with both company values and stakeholder expectations. These goals will serve as a guide for future initiatives and ensure that efforts are both intentional and impactful.
4. Familiarise with Legal and Regulatory Requirements
Understand all relevant local, national, and international laws around labour, social equity, and community engagement. Compliance with these regulations is the baseline for ethical engagement in social sustainability.
5. Engage Key Stakeholders for Feedback
Before launching social initiatives, gather insights from employees, customers, suppliers, and community members. Their feedback will provide valuable perspectives, allowing the business to address real needs and avoid potential oversights.
6. Develop Transparent Policies
Establish clear, transparent policies on fair treatment, equity, inclusivity, and employee welfare. These policies create a foundation of accountability, ensuring that social initiatives are guided by defined standards.
7. Allocate Resources for Social Responsibility
Ensure that the necessary resources—time, budget, and personnel—are dedicated to social sustainability. Social initiatives require a commitment of resources to be successful, so allocate what’s needed to support both short- and long-term efforts.
8. Set Up Internal Training Programs
Prepare employees by offering training on social sustainability, diversity, and inclusivity. This helps build awareness, knowledge, and a shared understanding of the company’s social responsibility goals across all levels of the organisation.
9. Establish Clear Communication Channels
Set up channels for open and transparent communication within the organisation and with external stakeholders. Clear communication ensures that everyone is informed about social responsibility goals and can engage in discussions or provide feedback.
10. Create Metrics for Tracking Social Impact
Define key performance indicators (KPIs) to measure the impact of social responsibility initiatives. Having metrics in place before starting allows businesses to track progress, make adjustments, and communicate achievements effectively.
TOP TIPS FOR EMBEDDING SOCIAL RESPONSIBILITY, VALUING PARTNERSHIPS, AND ENGAGING YOUTH IN BUSINESS STRATEGY
How can businesses integrate social responsibility deeply enough in the face of increasing public and legal scrutiny?
1. Showcase Impact Through Storytelling and Numbers
It’s important to communicate both the hard numbers and the personal stories behind your social responsibility efforts. Numbers demonstrate scale, but stories connect emotionally. Combining both helps illustrate the genuine impact a business is making.
2. Avoid Greenwashing – Be Authentic
Businesses should avoid pretending to be more sustainable or socially responsible than they truly are. Instead, they should create an authentic, transparent culture where employees actively participate in the process. This sincerity helps ensure the social responsibility efforts resonate with consumers and stakeholders.
3. Focus on Employee-Centred Value
Integrating social responsibility within the company’s culture isn’t only about external impact. A business should also focus on securing the livelihoods of its employees, creating shared value that benefits both the company and its workforce. This ensures internal buy-in and aligns employees with the company’s mission.
4. Prioritise Relevant Projects for Communities
Avoid “cherry-picking” trendy projects that may not align with community needs. Businesses should instead invest in projects that are meaningful to the local population. This ensures that corporate social responsibility (CSR) efforts are relevant, useful, and have a lasting positive effect on the communities they serve.
5. Embed Social Responsibility in Business Strategy
Social responsibility should be deeply embedded in the core strategy of the company, not treated as a secondary initiative. When CSR is an integral part of the strategy, it ensures that the business’s actions are aligned with its long-term goals for both financial success and positive societal impact.
6. Ensure Transparency in Reporting
Transparency is crucial in building trust. Reports should be clear, digestible, and easy to understand for all stakeholders. Avoid jargon and ensure that the impacts and principles being reported are accurate, verifiable, and comparable, which can further demonstrate the company’s commitment to responsible practices.
7. Honesty in All Efforts
Being honest about the company’s initiatives, challenges, and progress is key. Rather than over-promising, companies should be straightforward about what has been achieved and what is still a work in progress. This honesty fosters long-term trust with stakeholders.
8. Invest in Capacity Building and Training
To ensure employees are well-equipped to contribute to CSR efforts, businesses should invest in capacity building and training. This empowers staff to take ownership of social responsibility projects, deepening their engagement and impact.
9. Obtain Third-Party Certification (e.g., B-Corp)
Businesses can seek external validation of their social responsibility efforts by obtaining certifications like B-Corp. These certifications show that a company meets high standards of social and environmental performance, accountability, and transparency, offering external validation for their efforts.
10. Involve All Stakeholders in the Process
Effective social responsibility strategies require the input of all stakeholders, from employees to community members. This inclusive approach ensures that all perspectives are considered and that the efforts made are truly impactful for everyone involved.
11. Adopt Sustainable Practices Across Operations
Sustainability should be a guiding principle throughout the entire business, from operations to partnerships. Adopting environmentally responsible practices such as recycling, waste management, and decarbonization, alongside creating green operations, contributes to a company’s long-term positive impact on the environment.
12. Focus on Education, Awareness, and Behaviour Change
Education is key to shifting the culture around sustainability and social responsibility. Companies should invest in raising awareness about climate change, waste management, and sustainable practices, both internally and externally. This can include activities like tree planting, environmental education, and engaging partners in joint awareness campaigns.
13. Use Digital Platforms for Internal Engagement
Digital platforms can be a powerful tool for engaging employees and stakeholders in real-time. These platforms can streamline communication, provide updates on CSR initiatives, and track progress, creating a transparent and participatory environment where employees feel more involved in the company’s mission.
14. Inclusive and Transparent Reporting on Stakeholder Impacts
Reporting on the impacts to stakeholders should not be one-size-fits-all. The company should ensure that reports are tailored to different audiences, summarising key information in a clear and accessible format. This encourages greater trust and understanding from all stakeholders.
What actions can MSME businesses take to protect, respect, value the people in their business and their business partners e.g. suppliers, clients?
- Create Clear and Fair Regulations or Policies
It’s essential for MSMEs to establish fair policies that guide all interactions. Fairness should be at the core, from how customers are treated in line to ensuring everyone is given equal attention and respect. This approach builds trust with both employees and clients.
2. Promote Professionalism, Especially in Family-Based Businesses
Many MSMEs are family-run, which can lead to personal dynamics interfering with business operations. Emphasising professionalism helps in reducing conflicts and fosters a respectful, smooth working environment, leading to better relationships with clients and partners.
3. Invest in Research and Education
For MSMEs, research is often overlooked, but it’s a powerful tool for growth. Understanding market needs and customer behaviours, as well as staying ahead with proper education, helps businesses cater to their clientele effectively and make informed decisions.
4. Develop Good Feedback Mechanisms
A robust feedback system ensures that businesses understand customer satisfaction levels and areas for improvement. It’s important for MSMEs to create accessible spaces for customers to provide feedback, fostering continuous improvement and stronger relationships.
5. Celebrate Milestones and Reward Good Practices
Recognizing and rewarding good practices, such as excellent customer service, builds morale and encourages employees to continue giving their best. Celebrations, whether big or small, reinforce positive behaviour and customer satisfaction.
6. Embrace Cultural Diversity and Heritage
Respecting and embracing cultural differences helps MSMEs connect with diverse communities and foster inclusivity. Businesses should adapt their services to meet the cultural needs of their customers, ensuring a more personalised and respectful approach.
7. Develop Emotional Intelligence and Soft Skills
Customer service is not just about delivering a product but creating an experience. Businesses should invest in developing emotional intelligence and soft skills in their employees. This improves customer interactions, addressing their needs with empathy and professionalism.
8. Ensure Transparency in Products and Services
Transparency is vital, especially in production processes and product offerings. Being open about how products are made or sourced builds trust and reassures customers that they are receiving quality and ethical goods or services.
9. Implement Appraisals for Performance
Just as businesses may penalise poor performance, they should also reward those who perform well. Performance appraisals that celebrate and incentivize high-performing employees and businesses help promote a culture of excellence.
10. Enhance Trust Through Fair Practices
Trust can be easily lost if unfair practices occur. For example, ensuring that no one is charged differently based on nationality or social status is key to establishing a trustworthy business. Customers and employees are more likely to stay loyal to a business that consistently treats them fairly.
11. Cater to Customer Market Needs
Understanding the specific needs of your customer base and tailoring products or services accordingly is essential. Listening to customers and responding to their desires ensures businesses stay relevant and competitive.
12. Promote Professionalism in All Interactions
Treating everyone with professionalism—whether employees, clients, or suppliers—is fundamental. Businesses should ensure that all team members, regardless of their role or relationship to the company, adhere to the same high standards of professionalism.
13. Reward and Recognise Good Customer Care
Customer service is often the face of the business. Celebrating employees who go above and beyond to help customers fosters a positive work environment and ensures the business delivers top-tier service.
14. Leverage Tax Incentives for Good Business Practices
MSMEs can take advantage of tax leverage programs that reward businesses for practising good CSR. These incentives can help businesses reinvest in their operations, staff, or community, creating a cycle of growth and responsibility.
15. Introduce the Concept of Fairness in Pricing
Fairness in pricing, such as ensuring customers are not charged unfairly based on their purchasing power, helps businesses maintain a positive reputation. It also ensures that pricing remains transparent and equitable.
How can businesses engage with young people to include them in strategy setting and decision-making?
- Be Vocal About What’s Needed
Businesses should openly communicate what’s required and allow young people to be part of the decision-making and strategic discussions. This ensures that youth perspectives are integrated into the process.
2. Create a Culture of Generational Inclusion
Encourage a two-way exchange of knowledge, where younger and older generations learn from each other. By combining the energy and fresh ideas of the youth with the wisdom of the older generations, businesses can create a balanced, thriving environment.
3. Involve Young People in Leadership Roles
Don’t just involve young people in the implementation of decisions—let them take the lead on initiatives. Giving them real leadership responsibility empowers them and fosters ownership.
4. Reverse Mentorship
Encourage reverse mentorship, where young people teach older generations about current trends, technologies, or biases. This builds mutual respect and encourages growth in both directions.
5. Foster Corporate Youth Partnerships
Form strategic partnerships with youth-focused organisations to actively engage young people in business operations and decision-making. This creates a bridge between the corporate world and the younger generation, allowing for impactful collaborations.
6. Policy and Cultural Change
Cultivate a workplace culture that’s rooted in inclusive policies. A change in policy can spark cultural transformation, ensuring that the environment is conducive to youth participation.
7. Research and Impact Reporting
Engage in research to understand what young people need and what they can contribute. Impact reporting should reflect the contributions and influence of youth, helping businesses track their involvement in decision-making.
8. Create Spaces for Youth to Share Ideas
Set up safe, open spaces where young people can voice their ideas and concerns. Encouraging dialogue will help businesses align with the needs and aspirations of the younger generation.
9. Appoint Youth Ambassadors Within the Business
Assign young people as ambassadors to represent their peers and engage in key business discussions. This ensures youth are visibly present and active within the company’s decision-making process.
10. Provide Training and Mentorship Opportunities
Offer mentorship programs where young people can learn from experienced leaders while also teaching older generations about their experiences and needs. It’s a win-win for both groups!
11. Focus on Feedback and Communication
Maintain strong channels for communication and feedback, where young people can contribute their thoughts, voice concerns, and suggest improvements. This ensures that youth are heard and respected in business settings.
12. Ensure Fairness in Leadership and Decision-Making
Be fair in including young people at decision-making tables. Youth should have equal opportunities to be part of important business discussions and influence key outcomes.
13. Engage in Relevant Policy Discussions
Keep young people informed and involved in policy changes that affect them. An example of this was how Kenyan youths engaged in discussions around the Finance Bill 2024 to ensure they had a say in decisions that impact their future.
In conclusion, embedding social responsibility, valuing partnerships, and engaging youth in business strategy are key to fostering a sustainable and prosperous future. Businesses should highlight their impact through data and storytelling, ensuring authenticity and avoiding greenwashing. Aligning CSR efforts with company culture and community needs, coupled with transparent reporting and stakeholder engagement, builds trust and strengthens accountability.
For MSMEs, treating employees, clients, and partners with respect and fairness is crucial. Clear policies, professionalism, and investment in research and education promote inclusivity, while celebrating milestones and embracing cultural diversity strengthens relationships. Transparent communication on products and services fosters loyalty and enhances reputation.
Engaging youth in decision-making is equally important. Providing leadership opportunities, mentorship, and feedback allows businesses to leverage fresh perspectives while promoting intergenerational learning. Involving youth in leadership and policy discussions ensures businesses remain forward-thinking and responsive to their needs, driving innovation and long-term sustainability.
Until next time, keep safe. We will bring you other topics like gender lens investing, social and climate impact, government/policy involvement in policy, and other key conversations based on attendee feedback.