2023-05-02| Special

ESG’s Growing Impact on Human Rights

by Ameya Paleja
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Environmental, social, and governance (ESG) initiatives and investing have shown a decent hike over the past years. Human rights and social performance have always been an integral part of ESG in creating corporate social policies, sustainability, and managing social and human capital.

ESG represents a set of rules or standards that defines a company's outlook on making policies, managing relationships with customers, employees, communities, and suppliers, and following government policies within the organization. In terms of business and investing, these three parameters help potential investors decide whether the organization is worth their investments or not.

Many companies face challenges in aligning their business goals with the human workforce. Strategic management of social performance and human rights can help them achieve high employee morale, operational productivity, brand loyalty, and investors' trust.

However, there have been incidents where businesses have violated ESG norms to achieve materialistic goals. Hence, trying to achieve ESG goals does not necessarily mean that businesses are clean.

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