Social Sustainability and Resilience of Organizations

Kerstin Rücker, Director Human Resources & Organization Development at Eckes-Granini

Social Sustainability and Resilience of Organizations

In today's business world, the principles of sustainability have proven to be indispensable. Companies, that operate sustainably and effectively manage their ESG (environmental, social, governance) risks, often not only perform better, but also demonstrate greater resilience in times of crisis.

The social dimension of sustainability focuses on employee safety, health and well-being. Likewise, it includes diversity, equity and inclusion as key aspects of social sustainability.

Social sustainability is more than just a buzzword - it is a necessity in the modern business world. Companies that are socially sustainable value the safety, health and well-being of their employees. This includes not only physical health, but especially psychological safety in the workplace, as Harvard Business School Prof. Dr. Amy C. Edmondson has documented in her years of research.

These aspects are important not only for individual employee satisfaction, productivity and health, but also for organizational resilience and sustainable business success in times of polycrisis.

Organizational resilience refers to a company's ability to recover from setbacks and emerge from crises as strong as possible.

Companies have recognized that the cultural fit between people and organizations is crucial for business success. In recent years, they have therefore invested more strongly in developing their own purpose, corporate values, innovative capabilities and a clear leadership understanding in the sense of ‘new work.’

“ It’s Important To Maintain Flexibility, Long-Term Goals, And Plans While Also Making An Effort To Be Precise And Keep Up With Industry Developments.”

The development toward greater social sustainability requires a holistic approach. It is no longer just a matter of ensuring that employees are physically safe and healthy in terms of minimum legal standards, but in particular of creating a culture of transparency, open dialog, appreciation of diversity, trust and courage, and constructive collaboration, thus providing psychological safety.

Companies that value and leverage the diversity of their workforce to develop innovative solutions and adapt to a changing environment have a clear advantage.

In a time of polycrisis, where companies face multiple simultaneous challenges, the ability to adapt and transform flexibly and swiftly is of great value.

In today's business world, companies are challenged more than ever to dynamically meet changing requirements in ever-shorter timeframes.

This requires not only continuous development and adaptation of organizational structures and processes, but in particular an adjustment of outdated leadership styles, behaviors and forms of collaboration and communication. Companies that invest in, develop and support their employees will be better positioned to meet the challenges. Transformation capability is therefore a key aspect.

Companies that recognize this, place social sustainability at the center of their organizational and personnel development. They are no longer just investing in environmental initiatives as part of their sustainability efforts, but also in social sustainability programs.

Thus, employee safety, health and well-being are not just ethical obligations. They are business imperatives and part of securing a company's future: employees who feel physically and psychologically safe and healthy tend to be more resilient - especially in times of change - and more committed and loyal to the company.

Social sustainability not only fosters individual and organizational resilience, but also potentially growth and sustainable success of the company.

It is therefore crucial for top management, HR managers and leaders to prepare the organization and its employees to meet the outlined challenges effectively and in terms of social sustainability.

In conclusion, social sustainability and organizational resilience go hand in hand. Companies that invest in the safety, health and well-being of their employees and foster a culture of openness, trust, diversity and inclusion are better positioned to meet the challenges of today's volatile, uncertain, complex and ambiguous (VUCA) business environment and continue to thrive in the future. It is time for leaders, sustainability- and HR professionals to recognize this connex and act upon it.

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