“Impact beyond PROFIT”: Companies drive pillars such as Social Responsibility and Sustainability

The concept of “impact beyond profit” is becoming increasingly important, redesigning the purpose and strategy of companies and their contribution to society and the environment, due to the growing demands of consumers, employees and investors for a socially responsible and sustainable action.

Currently, many companies have focused on purposes that go beyond financial returns, but also on initiatives and projects of environmental sustainability, social responsibility programs and actions aimed at the well-being of communities located around corporations.

According to a study released in April 2024, carried out by Amcham Brasil, “Panorama ESG 2024” – which heard 687 Brazilian executives and business leaders – there was an increase of 24% in the ESG adoption curve (environmental, social and corporate governance), in relation to the same survey, in 2023.

According to the research, in relation to knowledge and experience in the ESG agenda, there was a significant increase of 13 percentage points compared to 2023, with 75% of the respondents reporting having experience and/or reasonable knowledge on the subject. The increase indicates a greater understanding of ESG practices by Brazilian companies.

When asked why organizations are adhering to the ESG agenda, 78% of respondents stated that they seek a more positive impact on environmental and social issues. Regarding the benefits of adopting the ESG Agenda, 50% said they strengthened the local community. In addition, the social pillar is the priority for 72% of respondents, followed by governance (68%) and environmental (66%). Another point is that more than half seek to train employees (65%), develop a diverse and inclusive culture (61%), in addition to generating jobs and income in the local economy (54%).

As awareness of social and environmental issues grows, companies face pressures to reveal transparency in their activities and impacts, which can be measured, evaluated and displayed through specialized companies and consulting companies.

Adopting social responsibility practices

According to Andrea Moreira, CEO of Yabá, an ESG consultancy that creates and develops solutions for companies with a focus on the positive impact on society, companies should not only seek to generate profit, but also create shared value, boost sustainable growth and generate a positive social impact. which means adopting responsible business practices and investing in initiatives that address social and environmental challenges in a meaningful way.

“Today, there is a strong collaborative trend, in which companies unite with non-governmental organizations and also with the government itself to expand and promote social impact. For this, it is necessary to work with the key stakeholders, which encompass not only customers and investors, but also local communities and NGOs. Open and collaborative dialogue with these groups is critical to promoting positive changes and, by adopting strategies to engage and collaborate with stakeholders, we strengthen relationships, promoting transparency and boosting the positive socio-environmental impact, says Andrea. The specialist also adds that today, social responsibility is no longer an option, but an essential part of business identity and strategy.

The actions carried out by the corporations can be carried out via support for the funds, a movement with the objective of helping companies to allocate resources to the Children and Adolescents and Adolescents Fund, in addition to incentive laws, such as tax incentives, in which companies donate part of the value of taxes to social projects that seek to encourage social development and culture or also for encouraging sports, in which companies allocate part of the income tax for the implementation of sports and parasports projects throughout the national territory.

Another method for companies to adopt social practices, in addition to those mentioned above, is through the relationship and action with the communities located around the companies. “In this case, companies can act on projects that bring benefits to such a locality and for that it is necessary to consider the human factors at each stage of the process: from planning to implementation, it is necessary to understand and meet the needs of the communities involved, respecting the cultures, traditions and aspirations of each one”, explains Andrea.

In short, companies that embrace such changes are shaping a more sustainable future and also ensuring their long-term relevance, recognizing that success is directly linked to the well-being of communities and society. “I believe that we can make a difference by creating a future where economic growth is truly sustainable and inclusive for everyone”, concludes Andrea.