In today’s business world, the importance of solid Corporate Social Responsibility (CSR) plans and Environmental, Social, and Governance (ESG) criteria is undeniable. These concepts, which have evolved significantly over the past years, underscore today more than ever the necessity for businesses to engage meaningfully and strategically in social impact and sustainability. These commitments not only have a positive impact on society and the planet but also on the economic performance of organizations.

Indeed, a recent study by KPMG revealed that 70% of business leaders state that ESG criteria improves financial performance, up from 37% the previous year. (KPMG 2022 U.S. CEO Outlook › Economic outlook)

The Evolution of CSR: From Corporate Citizenship to Business Lever

Historically, CSR has mainly been motivated by minimizing the negative impacts of operations, ensuring a healthy working environment for employees, and contributing as a corporate citizen through philanthropy, with little influence on the organization’s overall strategy. Moreover, philanthropic initiatives were sometimes chosen based on the personal preferences of leaders, without direct connection to the mission, expertise, or values of the company. This scattered approach created a great deal of inconsistency in the CSR portfolio of many companies, making it difficult to leverage them as true value generators.

The Arrival of ESG Criteria: A Paradigm Shift

The introduction of ESG criteria marked a turning point, encouraging companies to integrate social and environmental responsibility into their business strategy. ESG criteria have pushed companies to think more strategically about their commitments, assessing not only their financial performance but also their concrete impact on people, society, and the environment. This evolution underscores the importance of identifying causes and sectors of implication that correspond to the expertise, values, and strategic objectives of the organization, to maximize the impact of their actions.

Clarity and Coherence: Keys to a Successful Impact Strategy

Today, more than ever, clarity and coherence in the strategy for achieving greater ESG performance and CSR outcomes are of utmost importance. These elements allow a company to understand and precisely define its societal role by identifying the issues on which it can legitimately take a stand and where it has the capacity to make a difference. They also facilitate the development of a concrete action plan to innovate, mobilize resources, and measure progress. Undertaking a thorough reflection on the impact mission offers several benefits:

• Mobilization around common impact objectives: Well-defined, clearly communicated, and measurable objectives facilitate the engagement of employees, investors, and consumers.
• Inspiring narrative: A clear and coherent impact mission enables the creation of an engaging storyline that resonates with all stakeholders.
• Optimization of the partnership portfolio: By choosing partnerships aligned with their impact mission or optimizing existing partnerships, companies can focus their resources where they will have the greatest impact.
• Efficient budgeting: A clear strategy allows for a more precise allocation of financial resources to impact initiatives.
• Impact reports: Consistency in initiatives facilitates the preparation of ESG reports, demonstrating progress in a transparent manner.

Finding clarity and coherence in the impact strategy is essential for companies that want not just to compete but to thrive in the current economic landscape. By defining a clear impact mission, aligning social impact and sustainability initiatives with the strategic objectives of the company, and measuring the impact of these actions, companies can ensure sustainable growth while meeting the expectations of internal and external stakeholders.

Some Reflection Points

In conclusion, it is essential to critically and constructively consider your company’s sustainable and social impact strategy. The following questions can guide a deep and productive introspection of your current approach:

• What are the main social or environmental issues that your company aims to solve or mitigate? How are they related to your industry, operations, stakeholders, and the company’s history?
• Is there a unified and explicit internal understanding of the role your company plays in facing future challenges?
• Is your social impact and sustainability messaging clear, accessible, inspiring, and engaging?
• Is the partnership portfolio aligned with your company’s cause or sectors of implication, and does it effectively create shared value?
• Finally, is the impact mission coherently integrated across your organization, notably with your HR, Communications, Product & Innovation, and Marketing teams?

Addressing these questions with sincerity and commitment will guide you toward developing a clear and coherent impact strategy, essential for navigating contemporary issues with integrity and efficiency.