More than just buzzwords in everyday corporate life
Especially in the current volatile times with wars, resulting energy crises and unpredictable political conditions, companies with a clear strategic direction and an authentic ESG orientation will emerge stronger.
At the turn of the millennium, all companies realized that they had to do something about climate change.
They also realized that in order to be resilient as a company, they had to invest in innovation.
These innovations are important in order to be able to give strategic shareholders the appropriate return.
The companies were certain that they could achieve both ecological change and the necessary return on investment through innovation.
It was soon realized that these challenges would only be achievable with the right personnel…so interesting HR concepts were developed and every old-economy company wanted to be a start-up to a large extent in the area of HR – not in the organization (social benefits, modern office space, etc).
To present the company’s goals to investors and shareholders, visions were developed, written down and packaged in elaborate stock market prospectuses.
A purpose was communicated to present the company to the general public and thus to the labor market!
So far so good….then came COVID and suddenly companies were no longer important driving forces in an economy but were dependent on the goodwill of governments! In return for COVID subsidies, these governments demanded a strong focus on environmental aspects from companies…because that’s how you win elections!
And then there was a war and suddenly the ecological transition was no longer easy to implement, because cheap energy from Russia was no longer politically opportune and nuclear power is accepted as green energy in France…but not in the German-speaking countries. With the resulting high energy costs, a second driving cost factor was added to the high wage costs in the old economy….and then the public digitalization and public energy transition also went wrong!
While companies try to align themselves with the framework conditions, they are labeled either “woke” or “cheugy” in the ongoing political debate.
“Despite these challenges, the EU continues to demand the Green Deal on a massive scale…but companies in Europe can no longer afford it in the face of global competition!”
Due to the massive intervention of politics, every company would do well to define the sustainability criteria that suit its business regardless of the current opportunity.
Corporate visions and the ESG criteria derived from them must be independent of short-term trends and opinion polls, because companies that adjust their vision on an annual basis are quickly labeled as “almanac”!
The right criteria must therefore be based on a truly long-term vision/strategy of the company and have a suitable purpose.
Through this combination of a clear strategy and a high-profile, authentic purpose, the companies with the best employees will be able to achieve the committed success metrics in high-price countries in terms of personnel and energy in the future.
Companies with a clear focus, a clear vision and a smart strategy will achieve the desired returns for their shareholders through innovative products/services.
A key success factor will be compliance with the ESG criteria appropriate to the company.
These measures will help companies to withstand environmental challenges, find skilled workers on the labor market and increase returns for their shareholders.
