A Happy New Year from SIRB!
As we step into 2023, ready to be one step closer to our dreams, we have much more than our own plans to be excited for. The new year brings with it numerous intriguing things to look forward to, in the realms of social impact and responsible business. Five of the trends we expect to see in these realms are as follows:
Data - A Sustainable Oil
Data might be the new oil, albeit more sustainable this year. Businesses will continue to capitalize on their data and AI capabilities, not just for general business, but also to satisfy their environmental commitments. Data capabilities come in handy in monitoring materiality metrics for CSR and ESG, while AI helps make better resource allocation decisions like water and energy usage across different industries. Some companies are leading the way in enabling other institutions with data-centric and AI-oriented solutions for carrying out responsible business. One of these companies is IBM, who, through its Environmental Intelligence Suite, is offering insights to companies for sustainable infrastructure investments. Another notable company is sweep.net which is offering data-oriented solutions to companies for mapping and reducing their carbon footprints.
Sustainability In And Of The Cloud
After data and AI, another bridging of high-tech and responsible business lies in the cloud. Cloud technology will continue to be invaluable in helping companies carry out responsible business by lowering their negative environmental impact. This is in two ways. Firstly, the cloud infrastructure is more sustainable than typical on-premises servers due to the higher energy-efficiency built into its design. Secondly, cloud technology companies can use it to support their responsible business efforts like lowering carbon emissions, partnering with local organizations for CSR and reducing wastage in offices and in production. Microsoft has even created Microsoft Cloud for Sustainability to help companies leverage the power of the cloud for their sustainability efforts.
Developing Social Value
As we grapple with a cost-of-living crisis, whilst amid a climate and energy crisis, it is social value that emerges as an all-round solution for businesses to thrive. Social value is the contribution a business makes to society, and in particular the local community. Businesses, in the quest for retaining customer loyalty in such tough times, will try to find innovative solutions to make the cost-of-living crisis easier on their customers and local community, whilst simultaneously driving down their costs using less non-renewable energy. The collective result leads to a win-win: satisfied customers, and businesses enjoying fewer costs, all whilst being more environmentally responsible.
More Income Streams Amidst A Cost-Of-Giving Crisis
The cost-of-living crisis has led to a cost-of-giving crisis: as people struggle to make their own ends meet from their income, 55% of the public has stated that their financial situation makes it harder to donate to charitable causes. Thus, as the strong risk of a funding shortfall is looming, charities will need to maximise their scope to receive donations. This makes 2023 a year for charities to increase their number of income streams: some income streams that might prove beneficial include sponsorship models, corporate partnerships, selling merchandise or other products and legacy and tribute fundraising. Charities will also find it worthwhile to innovate their way into new income streams, especially given the recessionary outlook for the next 12-18 months.
Corporate Social Responsibility, But More Authentic
According to a survey conducted by the PR software provider Prowly, the leading PR trend anticipated by PR professionals in 2023 is 'social responsibility’. Social responsibility in this context comprises DEI (Diversity, Equity and Inclusion), CSR and ESG. Global events such as the Ukraine crisis have deeply moved the public; who subsequently want to engage with brands that share their approach to social issues. Having said that, customers strongly favour companies with an authentic approach to their responsible business decisions. Customers are also becoming increasingly perceptive of greenwashing and other PR stunts that overplay the sustainability in a company’s practices. The addition of new regulations and stricter prosecutions for greenwashing also make it even more imperative to carry out CSR practices that send out the right message about the company and its viewpoint on social and environmental issues.
A dominant theme expected this year is bridging- bridging high-tech with sustainability, bridging multiple problems with a single solution, or just bridging a company towards a better public reputation. While the volatile, uncertain, complex and ambiguous (VUCA) nature of the world determines the strength of these bridges, it will be fascinating to see how these ‘ins’ shape the future of the planet.
What trends do you anticipate for social impact and responsible business? Let us know in the comments below!
Written by Kavya Sangam
Sources
https://www.the-future-of-commerce.com/2022/10/13/sustainability-trends-2023/#jumplink6
https://www.pwc.co.uk/services/sustainability-climate-change/insights/how-ai-future-can-enable-sustainable-future.html#:~:text=In%20parallel%20the%20application%20of,Australia%2C%20Canada%20and%20Japan%20combined.
https://docs.aws.amazon.com/wellarchitected/latest/sustainability-pillar/the-shared-responsibility-model.html
https://charitydigital.org.uk/topics/top-fundraising-trends-for-2023-10328#link1
https://www.pioneerspost.com/news-views/20230113/social-value-2023-five-trends-watch
https://www.executivecompass.co.uk/social-value-practice/what-is-social-value/
https://www.prweek.com/article/1807981/csr-leading-pr-trend-2023-ahead-ai-technology#:~:text=Comfortably%20the%20leading%20trend%20that,environmental%2C%20social%20and%20governance).