Social value and professional responsibility
As the economy rebuilds itself from the COVID-19 pandemic, businesses can collaborate to build a better and more equitable society. The latest research from iResearch Services on ESG focuses on DEI in professional services.
Professional services firms must increasingly provide evidence of social value. Demanded by clients and other key stakeholders, it is becoming – if not the case already – an imperative, not a nice-to-have. Equally, it cannot just be a case of paying lip service. Conversations must be supported and evidenced with action.
How can professional services firms move beyond purpose intent to drive sustainable social change and greater contribution to communities?
“Because of its significance to organisations, purpose can no longer be constrained by Corporate Social Responsibility (CSR) initiatives or advertising campaigns.” – Brandpie CEO Purpose Report 2022.
Connecting the dots between environmental, social, and governance (ESG)
The business case for DEI is well established, with research indicating that diverse and inclusive teams are twice as likely to meet or exceed financial targets and eight times more likely to achieve better business outcomes. [1] When companies master DEI, bringing a diverse mix of people to the table also has positive knock-on effects for other important ESG areas. When breaking down the findings by professional services company type, we can see clear differences between sectors.
The research found that legal firms are much more active than their peers, having run DEI initiatives over the past six months at a higher rate (86%) than accountancy firms (73%) and consultancies (59%).
Legal firms are active in the wider conversation, too, with a great deal of transparency and discussion around DEI coming from legal thought leaders and professional bodies in the form of articles, blogposts, and workshops. Practical tools also exist such as the Solicitors Regulation Authority’s (SRA) searchable database of law firms’ diversity data, which is a notable example of how to make DEI data transparent and accessible. [2]
The work of professional services firms underpins a great deal of how businesses operate, and redesigning how law, accountancy, consulting, and architecture can work to better include and serve the whole of society benefits the wider corporate ecosystem, charitable and not-for-profit sectors and beyond.
Sustainability is one area that many firms across sectors are putting considerable resources into getting right, and with COP27 taking place amid considerable work that still needs to be done, it is a global effort that business leaders are joining forces to tackle. Both DEI and ESG are core to the way we do business in the firm of today and the firm of the future.
Who is responsible?
However, with work to do on tackling broader ESG issues across all business sectors, who is responsible for driving positive change, and who gets to take part in this conversation?
The latest CEO Outlook from Brandpie suggests that leadership is responsible for driving purpose from conversation to implementation.
Their research showed that 64% of CEOs agree it is their responsibility to define purpose for their organizations. “The role of CEO is quickly incorporating that of “chief values officer,” with leaders the primary spokespeople for their organizations on social and political issues,” according to the report. [3] From a corporate governance perspective, boards that lead by example are better placed to lead positive change throughout a whole organization.
“The work of professional services firms underpins a great deal of how businesses operate, and redesigning how law, accountancy, consulting, and architecture can work to better include and serve the whole of society benefits the wider corporate ecosystem, charitable and not-for-profit sectors and beyond.”
The role of Marketing and BD in social value
Firms are increasingly relying on marketing, communications and BD teams and the individuals within them to drive and showcase social value initiatives. Should it really be the responsibility of the marketing and BD function to lead this activity, or should the sense of direction and strategic approach come from the partners and senior leadership?
Are firms with marketing and BD professionals that are personally more eager to participate in and support social initiatives more likely to get involved and assume the challenge within their firms and for themselves whilst others do not?
There is an argument that the impetus from the professionals that are responsible for communicating the firm’s social contribution externally will support more consistent efforts and provide a more effective springboard for social change.
On the other side of the coin, however, there can often be a disconnect between company and employee values. Employees with the combination of strong values and a desire for change are also now increasingly vocal – with fewer qualms in calling out firms on social discrepancies and lack of action. [4]
Thought leadership to drive and show commitment to social value
How do both firms and the individuals involved communicate what they’re doing, why they do it, and the results from their activity? What are the challenges of doing so? One of the key hurdles is falling into the trap of ‘greenwashing’: making claims that the organisation is more ethical or environmentally friendly that it really is.
When communicating environmental and social efforts, how do you avoid various levels of greenwashing? Answer: through effective communication throughout the firm and transparency – from top to bottom. Authenticity, transparency and action are key.
Thought leadership campaigns can take programmes from words to action. With data, opinion and insight to back up conversations and any claims of contribution on a firm-wide level, thought leadership content and communications can help tell stories of social commitment and drive narratives for social change clearly and transparently, avoiding greenwashing or simply blowing the firm’s own trumpet.
[1] Neil Borkert, Leading Diverse and Inclusive Teams: Medium, November 2020.
[2] A Fairer Future: DEI in Professional Services, iResearch Services, 2022
[3] Brandpie CEO Purpose Report 2022: https://www.brandpie.com/thinking/ceo-purpose-report/2022
[4] Brandpie CEO Purpose Report 2022: https://www.brandpie.com/thinking/ceo-purpose-report/2022