Why Do Businesses Need Social Programs?

The social responsibility of business is growing against the background of aggravated social, economic and digital inequality. Most consumers are ready to give up the goods and services of those companies for which profit is more important than caring about people and environment. The trend towards systematic social investment is the main topic of the new issue of trendletters, produced as part of a joint project of the Human Capital Multidisciplinary Research Center and the UNESCO Futures Studies Chair (UNESCO Futures Literacy Chairs network).

For reference: This series of trendletters continues the practice of publishing reviews of global technological trends since 2014 and presents a unique database of global trends and challenges in the field of human development. This research of the HSE ISSEK is based on the results of iFORA Big Data System, the Delphi survey (with the participation of more than 400 leading foreign and Russian scientists), expert sessions and interviews.

The growth of information transparency and the speed of data dissemination increases public attention to what policies companies adhere to. Business can no longer ignore social issues, as this threatens significant reputational and financial costs. 

Increasingly, corporate strategies are based on ESG principles based on environmental protection, ensuring social well-being and effective management of the organization. 98% of institutional investors monitor the ESG rating and make decisions based on it. 

Under the influence of the COVID-19 pandemic, the importance of social projects and social responsibility to employees has increased. In particular, this was reflected in the expansion of psychological support programs, support for work-life balance, as well as updating the procedure for granting vacations. In addition, the focus of attention turned out to be the social determinants of health — education, economic stability, proper nutrition, etc. 

Russia is also characterized by including employee welfare issues in corporate strategies. Along with this trend, social entrepreneurship is also actively developing: in 2022, the growth of the sector in Russia amounted to 27%. This was facilitated by the systematic development of the sphere and assistance from the state: federal grants in the amount of 100 to 500 thousand rubles (in the Arctic zone — up to 1 million rubles) and a reduction in the minimum co–financing of projects from social enterprises - from 50 to 20%. 

The new issue is available via the link.

Previous issues of trendletters can be found here.