Human Power: we need to redefine the “S”, the social factor.
Nowadays, the sustainability of organizations goes far beyond the traditional environmental vision. The concept of ESG (Environmental, Social, Governance) is widely discussed, but it is necessary to redefine the “S” – the social factor – in order to place human beings at the center of sustainability policies. We need to move on from concern about the social consequences of operations to real action that values people, recognizing that human strength is one of the most valuable and, at the same time, most neglected assets within companies. The sustainability of organizations lies in people.
image: Ceomonthly
One of the great challenges facing organizations lies in the gap between “Knowing” and “Doing”. Many business leaders understand the importance of human sustainability and know that a genuine focus on the well-being of their teams is fundamental. However, few companies actually implement concrete practices to foster this environment. This “gap” is revealed when, according to the recent study “2024 Global Human Capital Trends”, carried out by Deloitte, only 43% of workers say that their companies have left them in a better condition than when they started working. This discrepancy between intention and action threatens the longevity and resilience of organizations.
Human sustainability in the business context encompasses multiple aspects, including health, well-being, skills development, employability, equal opportunities and a sense of belonging. For a company to be truly sustainable, it needs to ensure that its workers have access to good jobs, with the possibility of progression, and that they leave with better living conditions than they had before. The focus must be on creating environments where each employee feels valued and motivated, knowing that they are part of something bigger and that they contribute to a purpose.
One of the conclusions of the aforementioned study identifies the main challenges that concern workers as burnout or mental health (53%), followed by technological evolution, which “could steal jobs” (28%), especially artificial intelligence, and requiring workers to acquire new skills at an alarming rate (25%). The lack of adequate support for temporary or contract workers and the few opportunities for progression for those on the front line are also obstacles to consider. In addition, slow progress in diversity, equity and inclusion (DEI) keeps organizations stagnating in terms of social and human impact. We can therefore say that current trends seriously threaten human sustainability.
These threats underline the need for a change in mentality. Instead of seeing people as resources to be used, companies must focus on creating real value for each person connected to the organization. Human sustainability requires replacing the extractive and transactional mentality with a mutual growth approach. “When people thrive, business thrives” is more than a motto – it’s a proven reality: when people feel valued and supported, they deliver their best and drive business success.
To measure progress in this area, companies can adopt metrics focused on skills development and employability, career stability and progression, well-being, and IED. These indicators help to understand where human sustainability actions are having an effect and where there is still work to be done. Ensuring the continuous development of employees’ skills, along with opportunities for advancement and a fair and inclusive working environment, promotes the healthy growth of the company.
Another crucial aspect is the social impact of organizations. Modern companies must get involved in the social and environmental issues affecting the world, such as the energy transition and climate change, creating a long-term vision that is sustainable for everyone. As well as demonstrating social responsibility, these practices contribute to a working environment that reinforces employees’ sense of purpose, stimulating their commitment and loyalty to the organization.
In short, companies need to rethink their role in people’s lives and in society, taking a holistic approach to human sustainability. Recognizing that business success is inseparable from the well-being and happiness of its employees and acting accordingly is undoubtedly the path to a more resilient, innovative and lasting organization.
Article written by Sérgio Almeida, in partnership with the weekly newspaper Vida Económica.
