Area: Leadership and governance

2022 Private sector social impact leadership survey

2022 Private sector social impact leadership survey

Leaders who bring confidence, creativity, and conviction to their work are arguably the most important ingredient to generating social impact. Often behind the scenes, these individuals play key roles in elevating and executing the social and environmental priorities of their organizations, priorities that are increasingly imperative for the private sector. Juggling stakeholder interests, cross-company engagement, and increasing expectations for monitoring and reporting, delivery of a social impact strategy is not an easy task.

From 2021 to 2022, we saw the emergence of the Russia-Ukraine war, the highest daily case counts of the COVID-19 pandemic, multiple mass shootings, deadly instances of extreme weather, and the repeal of Roe v. Wade – all followed closely by ever-louder calls for the private sector to speak out and step up. Leaders in corporate social responsibility and ESG (environmental, social, and governance) were on the receiving end of those calls, setting the priorities and making the decisions that shaped their organization’s actions. 

So what exactly were the most significant forces that changed the way leaders in these functions approached their priorities and decision-making over the past year? What did leaders do differently, and why? And what are leaders anticipating the environment, their organizations, and their jobs to hold in store for the year to come? 

To answer those questions and more, NationSwell launched a survey in August 2022 specifically for private sector social impact leaders. The resulting report explores nine major findings across three categories: 

General sentiments

  • Despite a challenging environment, leaders are satisfied with their organization’s social impact and their personal contributions; they also remain confident in their ability to perform in the year ahead
  • Compared with their assessment of overall social impact, leaders are less impressed by their organization’s response to pivotal moments in the past year; the same is true of their individual contributions during those moments
  • Leaders view creating economic growth – for communities and for individuals – as secondary to their company’s other societal contributions

Headwinds and tailwinds

  • Global conflict, the pandemic, and extreme weather significantly outrank domestic social and policy events – including the repeal of Roe v. Wade – for influence on leaders’ priorities
  • Leaders share a growing concern about economic conditions, but differ widely on other top headwinds to impact
  • Organizational stakeholders provide steady tailwinds for social impact leaders, but the influence of other companies is on the rise

Change and adaptation

  • Acknowledging key vulnerabilities and the power of collective action, leaders are creating new frameworks for responding to pivotal moments and seeking strength in numbers
  • To become more confident about their paths ahead, leaders need more financial resources; they also need clarifying information about their organizations
  • In considering overall career goals, leaders crave thought leadership – their own and that of others
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The state of play: DEIB

The state of play: DEIB

Organizations have taken a larger interest in the practice of Diversity, Equity, Inclusion, and Belonging since COVID-19, the murder of George Floyd, and other pivotal events brought long-entrenched societal inequities into the spotlight. While their arc of progress is uneven, the simple fact remains: injustice occurs as prominently in workplaces as anywhere else, affording companies the opportunity – perhaps the responsibility – to model solutions that could ultimately yield a wider societal benefit. This trend report describes five key trends for DEIB in 2022:

The trends: 

  • With high expectations from current and prospective employees, companies are revamping recruitment to meet diversity goals; they are struggling to employ complete strategies.
  • To advance equity and inclusion, companies are leaning into stronger benefits, policy updates, and employee resource groups; data on efficacy is scarce, but makes clear that the work is just beginning.
  • Employee perspectives on DEIB effectiveness vary in ways that are unsurprising; company leadership has a responsibility for more open and reciprocal communications to better respond to these differences.
  • Reporting and disclosures around DEIB are improving, but the data is inconsistent and incomplete.
  • DEIB executives are turning over at an increasingly high rate; lack of resourcing, insufficient company-wide engagement, and burnout are major contributors.
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Social impact professionals’ views on the changing talent pipeline

Social impact professionals’ views on the changing talent pipeline

SURVEY FINDINGS
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The COVID-19 pandemic disrupted the way we work in unprecedented ways, both positively and negatively. While many employees attained new flexibility to work from home, and others exercised new leverage to pursue beneficial career shifts, many others experienced significant difficulties, like record high rates of burnout, layoffs, and rising cost of living. Educational attainment patterns have also shifted, with lower levels of post-secondary enrollment and higher levels of dropout changing the outlook for future workforce qualifications. For employers, these trends are increasing pressure to evaluate strategies and investments that affect the education, training, and retention of their current and future employees.

To better understand the sentiments and priorities of purpose-driven professionals, individuals who are often at the vanguard of social impact and innovation, NationSwell partnered with Lydia Loizides, President of Talentedly. Together we surveyed the NationSwell Council, a diverse community of individual changemakers, to learn more about their unique perspective on the evolving demands of the talent pipeline in the United States. This report provides findings from that survey.

Specifically, it explores three themes that emerged from eight major findings: 

Educating the future workforce

  • Social impact professionals say the educational and job training ecosystems are in need of reform to better prepare young people for success in the workforce
  • Social impact professionals aren’t ready to do away with post-secondary education as a credentialing system
  • Social impact professionals want companies to be more directly involved in the education and training of the workforce, including during their post-secondary years
  • In their desire for a more prepared workforce, social impact professionals say soft skills are the most important

Hiring and recruiting talent

  • DEIB remains a top priority for social impact professionals, particularly as it pertains to recruiting and retention, but actions are lagging behind intentions
  • A majority of social impact professionals are aware of organizational plans to change hiring and recruitment strategies in the next 12 months, identifying a range of modest to bold efforts to increase candidate diversity

Retaining and engaging employees

  • To keep employees satisfied and engaged, organizations have been focused on improving communications from senior leadership and promoting remote/hybrid workplace flexibility.
  • ​​Social impact professionals are keen on increased compensation and stronger communications around professional advancement as key to strengthening employees’ job commitment in the next 12 months.
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The state of play: Corporate civic engagement

The state of play: Corporate civic engagement

Corporate civic engagement describes how companies plan for, respond to, and participate in political, social, and cultural activities that are important to their employees, customers, communities, and other stakeholders. Unlike traditional government relations and public affairs efforts, which often relate narrowly to core business interests, corporate civic engagement often denotes a clear, public stance on broader social issues and values.

2020 sparked increased corporate civic engagement, with companies taking a more vocal stance on a larger portfolio of political and social issues than seen before. Today, those same companies are grappling with the reality of serving a broad spectrum of employees, consumers, and other stakeholders in a politically fraught environment. The current moment – and those on the horizon – will tell us a lot about the social role of the corporation moving forward. This trend report describes five key trends for corporate civic engagement in 2022:

The trends: 

  • Since 2020, more customers than ever want companies to take a stance on social and political issues, but they may not be aligned on what that stance should be.
  • Employees are increasingly willing to leave companies and mobilize their collective strength to force change, and they’re not letting CEOs get away with non-public action.
  • Politicians and companies are confronting one another in uncharted territory; the risk calculus for corporate leaders is getting scrambled as a result.
  • Media and third party watchdogs are bringing more transparency to the gap between commitments and actions; they’re revealing that companies still have a ways to go.
  • Partnerships and playbooks are gaining momentum to address political, consumer, and employee challenges; though there remains no one-size-fits-all strategy.
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The state of play: ESG

The state of play: ESG

ESG describes an array of non-financial factors that investors, regulators, and other stakeholders use to evaluate the performance of companies. The growing popularity of ESG-motivated investing is contributing to more transparent and rigorous corporate reporting practices as well as operational changes aligned with improved social and environmental impact. ESG factors are increasingly understood as interconnected with–rather than distinct from–the financial performance and value of a company.

ESG can retain the attention it has garnered over the past few years if companies and investors better match their public commitments with operational rigor. Skeptics will undoubtedly remain, but ESG can become a powerful force for change if stakeholders make it so. This trend report describes five key trends for ESG in 2022:

The trends: 

  • Social issues are at once more fragmented and more important to the general public than climate concerns; as companies concentrate their climate commitments around carbon neutrality and net zero, the public is likely to become even less forgiving of those that perform poorly on social factors.
  • Dozens of ESG reporting frameworks and regulatory standards exist in jurisdictions around the globe; efforts are underway to consolidate and simplify those frameworks for the sake of consistent and universal reporting requirements.
  • Investors and companies are seeking deeper expertise and greater accountability related to ESG on their management teams, staff, and boards; the marketplace for that talent is not yet well established. Soon, that will change.
  • More retail investors, small funds, and large institutional investors are embracing an activist posture related to ESG and expressing growing skepticism that companies will make good on their commitments; the efficacy of ESG-motivated investor activism is on the rise, too.
  • Until recently, private markets have taken a back seat to public markets in ESG investing; now, private equity investors are playing a major role in the next chapter of the ESG story.
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