Of all environmental, social and governance (ESG) issues, measuring and reporting on the ‘social’ aspect are often considered the hardest. Following recent observations that many telecoms service providers have included volunteering and charity work in employee contracts, leading data and analytics company GlobalData notes that this will help them make a real difference to communities and attract talent in what is a competitive employment marketplace.

According to GlobalData’s report, ‘Environmental, Social, and Governance (ESG) Framework – Thematic Research’, companies are increasingly conscious of the need to bolster their reputation as responsible stakeholders in society. However, there are no global standards for ESG reporting yet, so it can be difficult for CEOs to know where to start. However, according to GlobalData’s ESG Strategy Survey, 67% of ESG executives believe that the pandemic has acted as a catalyst for increased focus and action on ESG issues, and 80% plan to increase their investments to meet ESG goals.

Robert Pritchard, Senior Analyst at GlobalData, said: “If companies are planning to spend more on ESG, part of that should go towards the social aspect. When it comes to service providers’ ESG initiatives—and there is currently a tsunami of them—the ‘easiest’ initial targets are carbon output, water use, employee demographics and so forth, as these are relatively readily quantifiable. However, this gets tougher the further you report up and down the value/supply chain.

“On the other hand, ‘social’ issues have their own challenges and advantages. While it is harder to quantify, it has its own ‘low-hanging fruit’—most notable being the proliferation of volunteering and charity days offered to employees. This serves not only to improve brand image by making a positive difference to communities, but also helps when looking to attract talent in a competitive employment marketplace. Further, it has the advantage of being under the company’s control.”

Social schemes have additional benefits: they reaffirm a commitment to ESG as a whole, which is of ever greater importance to customers, regulators, and governments; and, by exposing employees to external challenges, environments, and people, social activities can serve to drive creativity and ‘left of field’ ideas from outside the corporate environment.

Stephen Skeet, Director of Business Development and Impact at UK charity Volunteering Matters, points out that: “Almost 80% of volunteers state that volunteering enhances positive feelings about their employer, and over 70% had an improved sense of purpose. When asking volunteers about the impact of the experience they also noted increased motivation at work, effective team building, improved communication, and a feeling of using their skills to make a difference.

“Volunteering Matters’ employee volunteering programs offer significant impact for employers’ objectives, and the wider community. They provide a transformative impact on good causes and peoples’ lives, while developing employees’ professional skills and team relationships. By creating lasting positive changes within their local community, businesses can show their commitment to social impact.”

Pritchard concludes: “As recognized by telecoms service providers recently, offering the opportunity for employees to volunteer clearly makes social and commercial sense.”