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What is ESG: Focusing on the social responsibility

Learn about ESG with a focus on Social Responsibility. This guide dives into why the “S” matters, offering practical steps to create sustainable workplaces, boost employee engagement, and track your impact on employees, communities, and social well-being.

Using ESG to Drive Employee Engagement

ESG and employee engagement go hand-in-hand. When employees see that their company is serious about ESG, they’re more likely to feel proud and connected to their work.
This creates a positive cycle where engaged employees help your ESG goals, and those goals, in turn, strengthen employee engagement.

How does this work in practice? By embedding ESG into company culture, you create a work environment that not only attracts talent but also retains it through meaningful engagement.

See how ESG drives employee engagement

What is ESG, and Why Should Businesses Care?

ESG stands for Environmental, Social, and Governance - a comprehensive framework guiding businesses to adopt sustainable, ethical, and transparent practices.

 

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Environmental Responsibility

Environmental looks at how your company impacts the planet - from resource management to reducing carbon footprints. By reducing waste and conserving resources, companies not only align with regulatory expectations but also respond to the growing demand for environmentally responsible businesses.
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Social Responsibility

“The ‘S’ in ESG is all about people - your employees, your customers, and the community around you. It covers things like employee engagement, diversity and inclusion, health and safety, and community relations. Companies with strong social practices often see higher employee engagement, productivity, and retention rates, as well as stronger brand reputation.
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Governance

Governance is all about accountability and transparency. Good governance practice make sure that your company operates ethically, builds trust and stays on track with compliance. It’s about having the right systems in place to keep everything running smoothly and responsibly.

Why Social Responsibility Matters in ESG

Social responsibility goes beyond just meeting basic needs - it’s about creating a workplace that’s engaging, inclusive, and safe, and that positively impacts the community.

Companies with strong social values don’t just attract employees; they keep them engaged, productive, and happy. Plus, socially responsible brands are usually a step ahead when it comes to future regulations and what stakeholders expect.

Managing workplace stress is a big part of social responsibility. But what does stress look like, and how can you spot it?

Unfortunately, stress is becoming more common in the workplace. Here are five easy ways to help reduce stress and keep your team healthy and engaged.

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The Link Between ESG and Employee Engagement

Employee engagement is the missing piece that can take your ESG strategy to the next level. When companies commit to ESG, employees feel more connected to a shared purpose, which boosts their motivation and loyalty.

For example, companies that regularly check in on employee well-being through surveys often see benefits like higher productivity, less absenteeism, and better profits.

Drivers of Engagement:

  • Reputation
  • Senior Management
  • Immediate Manager
  • Co-operation
  • Job Content
  • Working COnditions
  • Remuneration
  • Learning & Development

How to Create a Sustainable Working Environment?

Creating a sustainable work environment means recognizing that employees aren’t just workers - they’re people with lives outside of work.

A sustainable work culture respects this by helping to prevent burnout, promote mental health, and ensure leaders take accountability for everyone’s well-being.

Here are a few ways to start:

  • Keep workloads balanced and prevent burnout
  • Promote mental health and well-being
  • Hold leaders accountable for long-term employee well-being.
Discover why an engagement platform matters
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Strengthening ESG Initiatives Through Cultural Change

Corporate culture is the backbone of any successful ESG strategy. Without a culture that supports ESG, even the best initiatives might struggle to take off. Cultural change helps make ESG a natural part of how your company operates, creating real, lasting impact.

See how fostering positive cultural change can strengthen ESG initiatives and create lasting impact.

See how culture strengthens your ESG strategy
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Key ESG Metrics and Social Performance KPIs

To truly understand and improve your social impact, you need to track the right metrics. That means setting clear, relevant KPIs that align with your organization’s ESG goals—especially the “S” in ESG: Social.

Each KPI tells a story. It shows where you’re progressing, where risks exist, and where targeted action is needed. By tracking the right data, you gain the insights required to build a more inclusive, ethical, and people-first organization.

 

Here are a few important ones:

Employee engagement score: Measures how motivated and engaged your employees are.

Diversity representation: Tracks the demographic diversity of your workforce.

Safety metrics: Looks at workplace safety and overall health, including incidents and the safety climate.

Measuring and Reporting on ESG Social Responsibility

Measuring social performance is the first step toward making real improvements. Start by collecting employee data to get a sense of your impact.

Here are a few key areas to focus on:

  • Employee engagement surveys: How satisfied and aligned are your employees?
  • Diversity metrics: Keep track of representation and inclusion efforts.
  • Health and safety metrics: Understand incidents and perceptions of workplace safety.

Each of these metrics gives you a clear picture of your company’s social responsibility. Discover more ways to collect social performance data here.

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Summary: Making ESG a Core Part of Your Strategy

Bringing ESG into your business strategy is about more than compliance—it’s about creating a resilient, future-ready company. From reducing environmental impact to fostering social responsibility and promoting transparent governance, ESG practices help your business grow sustainably.

Connect ESG efforts with employee engagement
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Want to make ESG part of your success story?

Get in touch to find out how Ennova’s insights and tools can support you. Whether you need data-driven surveys, strategies for cultural change, or expert advice, we’re here to help you make real progress.

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Explore the One-Stop-Shop for Engagement

The Employee Engagement Survey is just one piece of the puzzle. Our products and solutions make up a one-stop-shop with multiple tools developed to strengthen different areas of your employee experience – so you can take targeted actions. 

FAQ about About Social Responsibility and ESG

Wondering how it works? You’re not alone. Here are the ones we’re asked most often by teams exploring how our solutions works.

What does ESG mean in a workplace context?

ESG stands for Environmental, Social, and Governance. In a corporate context, ESG refers to the practices and policies companies adopt to operate sustainably and ethically. The "S"—Social responsibility—focuses on employee well-being, diversity and inclusion, human rights, and workplace culture. It’s about people, not just profit.
Why is the social aspect of ESG so important for companies today?

The social component of ESG directly affects:

  • Employee engagement and retention

  • Company reputation

  • Customer and investor trust

Companies that prioritize social sustainability—like psychological safety, fair treatment, and diversity—tend to outperform others. Employees are more loyal, and stakeholders more supportive.
What are examples of social responsibility in the workplace?

Some common examples include:

  • Promoting diversity, equity, and inclusion (DEI)

  • Ensuring safe working conditions

  • Supporting employee mental health

  • Establishing fair labor practices

  • Offering development opportunities and fair pay

These initiatives contribute to a more sustainable, ethical, and high-performing organization.
How can we measure social responsibility in our organization?

At Ennova, we recommend using a structured framework that includes:

  • DEI diagnostics and engagement surveys

  • Data on turnover, absenteeism, and well-being

  • Employee feedback on fairness, respect, and inclusion

  • Leadership accountability and team culture metrics

All of this can be tracked and benchmarked to identify progress and pinpoint risk areas.
What tools or solutions does Ennova offer to support ESG efforts?

We support the "S" in ESG with:

  • Tailored Employee Engagement Surveys

  • DEI and well-being diagnostics

  • Leadership coaching and team development

  • Data-driven advisory aligned with social sustainability goals

Our platform makes it easy to act on ESG goals and link them to your people strategy.
Is there a link between ESG and employee engagement?

Yes. Strong ESG performance—especially on the social side—has a direct impact on how engaged employees feel. When people experience fairness, trust, and belonging, they are more motivated, loyal, and productive. ESG isn’t just a compliance task; it’s a lever for engagement and retention.
How can we report on social responsibility in a credible way?

Start by collecting validated employee data (e.g. engagement, DEI metrics, and well-being scores). Then:

  • Compare results to benchmarks

  • Use insights to guide ESG narratives

  • Show transparency through dashboards or public reports

  • Align metrics with international frameworks (e.g. GRI, SDGs)

With Ennova’s platform and advisory, you can ensure your reporting is not only credible—but actionable.
Is ESG just relevant for large organizations? Not at all. ESG matters for companies of all sizes. Whether you're a multinational or a mid-sized enterprise, showing responsibility toward employees, society, and governance builds trust and long-term success. And it’s increasingly expected by talent, partners, and regulators alike.

Want to improve the social side of your ESG strategy?

We’ll help you turn intentions into measurable outcomes—and build a workplace that’s both responsible and resilient.

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