Why does business need social programs?

The social responsibility of businesses is increasing against the backdrop of growing social, economic, and digital inequality. Many consumers are willing to boycott the products and services of companies that prioritize profit over caring for people and the environment. The trend towards systematic social investment is in the spotlight 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 trendsetters 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 increasing transparency of information and the speed at which data is shared has led to increased public attention towards the policies that companies follow. Businesses can no longer afford to ignore social issues as they threaten significant reputational and financial risks. 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.

The COVID-19 pandemic has increased the importance of social projects and social responsibility to employees. This has been reflected in the expansion of psychological support programs, work-life balance support, and the renewal of vacation procedures. In addition, the focus has shifted to social determinants of health — education, economic stability, proper nutrition, etc.

Russia is also characterized by the inclusion of 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 decrease in the minimum co–financing of projects from social enterprises - from 50% to 20%.

The new issue of trendletter (Russian version) is available at the link.

Previous issues of trendletters can be found here.