OP-ED : In today’s evolving business landscape, companies and corporations are increasingly expected to demonstrate commitment towards sustainability, and it is not uncommon today to see several entities associate themselves with Environmental, Social, and Governance (ESG) principles and practices.
While many organizations tout their ESG efforts through public relations campaigns, it’s becoming clear that glossy reports and well-crafted statements are not enough. Stakeholders – be it customers, investors, employees, or regulators are demanding genuine, measurable action. Peter Drucker, a celebrated management philosopher emphasised the importance of tracking social and environmental metrics to drive sustainability because “What gets measured gets managed.”
The Pitfall of “Greenwashing”
Public relations (PR) is a powerful tool for shaping perceptions, but when it comes to ESG, PR without action is dishonesty and betrayal to stakeholders. Terms like “greenwashing” have emerged to describe companies that exaggerate or fabricate their sustainability credentials to appeal to stakeholders when in actual sense they aren’t taking the appropriate action as they claim to. For example, a company may claim carbon neutrality while failing to address its core polluting activities or tout philanthropic or corporate social responsibility (CSR) initiatives while neglecting to provide fair wages or generally good welfare for its own employees. These inconsistencies not only damage reputations but also erode stakeholder trust.
Action Speaks Louder than Words
To build credibility, we must go beyond words and take concrete steps towards integrating ESG into our core operations. “Sustainability is no longer about doing less harm. It’s about doing more good.”– Jochen Zeitz
Authentic ESG action includes:
• Environmental Stewardship: Reducing carbon emissions, managing waste sustainably, and adopting renewable energy. These actions must be measurable, verifiable, and aligned with global standards and agreements like the Paris Agreement. For example, a company can adopt digital processes to reduce use of paper, separate waste and work with recycling companies to reuse these products etc
• Social Responsibility: Organisation must intentionally assess their impact on communities, including their human rights. Ensuring fair labor practices, promoting diversity and inclusion, and investing in community development are some of the ways in which a company or organisation can enhance its impact social impact.
• Governance Integrity: Governance is often referred to as the pillar that binds social and environmental responsibility, therefore without good governance, it is impossible to achieve the latter. Good governance is not firefighting or crisis management, it is the daily routines and practices that support strong ethics, robust internal processes and accountability. Corporations establish ethical business practices, foster a culture of accountability, and ensure diversity in leadership. A strong governance framework is the backbone of sustainable business operations.
It is important to note that organisations that prioritize genuine ESG efforts reap tangible and intangible rewards. Studies show that companies with strong ESG practices are more resilient, attract investment, and enjoy customer loyalty. Moreover, they are better positioned to navigate regulatory changes and address emerging risks. As stakeholders become more discerning, superficial unmeasurable ESG claims will be met with skepticism, leaving such companies vulnerable to reputational and financial loss.
PR is a Complement, not a Substitute
Public relations is not inherently bad – it plays a vital role in communicating ESG efforts and inspiring others to take action. However, PR must reflect genuine progress rather than serve as a substitute for it. Effective ESG communication involves transparency, backed by data and evidence of impact.
In conclusion, PR alone is not enough when it comes to ESG. Companies must embrace authenticity, prioritize measurable actions and foster a culture of integrity and accountability. Only then can they build trust, achieve sustainable growth, and contribute meaningfully to a better world.
By Emmanuel Otuko – Corporate Affairs Specialist Centenary Bank
