Doing good, for goodness' sake?…..should businesses keep quiet about ESG?
The idea that maximising profit should be the only business of business is becoming an increasingly outdated concept. The world is changing, and both consumers and employees are choosing to work with companies that demonstrate that they are about more than just making money. However, cynics might argue that altruism in business is inherently selfish – after all, if doing good makes you look good, are you really being good at all?
Hugh Welch, our senior partner and head of our ESG programme, understands the predicament businesses face when deciding to pursue an ethical strategy: “They say there’s no such thing as a selfless good deed, but if businesses get caught up in the idea that doing good will simply be seen as performative, then we’ll never get anything done!
“As long as you’re actually doing good, rather than just trying to be seen to be doing good, it’s fine to talk about your achievements, especially if it encourages other businesses to follow suit.”
So, where should you start?
Do what you do best
Don’t try to do everything – focus on your strengths. Social value that aligns with your business, industry, and skill sets will not only be easier to implement but potentially have a bigger impact and be more likely to embed itself within your organisation. We carry out pro bono work. It’s not a new concept, but it doesn’t have to be; it is a tried and tested way of making an impact that plays into the firm’s strengths.
We were also one of the founding members of the innovative North East Solicitor Apprenticeship Scheme (NESA), created in response to growing university fees. Similar schemes are now popping up all over the country, bringing some great new talent into the legal industry.
Build relationships
Think about why you chose a charity to support and what you can do to grow that relationship. Hugh says: “We work with a lot of charities through our grant giving from our Muckle Fund at The Community Foundation, but we always try to see how else we can support. Our best relationships with charities are where there’s a genuine sense of partnership rather than simply a one-way donor/recipient connection.”
“The Country Trust is a charity where farmers and landowners welcome disadvantaged young children onto their farms to share their passion for food, farming and the countryside. We initially supported the charity with a grant, but we also have a team of specialist agriculture lawyers who speak to farmers daily, so why not open up our networks to make introductions to the charity? It’s worked fantastically well, with many of our rural clients now hosting farm visits for the charity.”
Collaborate
What can you learn from others? It’s not about copying and pasting because your strategy has to be driven by your business and your people, but it’s also not about reinventing the wheel. Speak to other businesses about their experiences and use that to shape your own journey.
Hugh says: “If we can agree that we’re doing this for the benefit of the community at large and not to be self-serving, then there is no need to worry about ‘copying’ of work. If we’ve found something that’s worked well, we’re happy to share in the hope that it works for another business because, ultimately, it’s the causes we’re trying to help who’ll see the difference.
“That’s what is so great about B Corp, it encourages businesses in the B Corp community to collaborate and learn from each other. Not only can you share ideas, but you can also pool resources.”
You're already doing a lot
Many businesses carry out a vast amount of social value, they just don’t measure it. Once you do, you’ll actually be surprised at how much of an impact you’re already having.
Hugh says the firm needed to change very little to achieve its B Corp accreditation: “Running the firm with an eye on supporting the community has been part of who we are for a long time. Over the last few years, we’ve made a conscious effort to be better at measuring what we do, but the B Corp accreditation process really makes you look at every single aspect of your business.
“I think the reluctance to measure goes back to worrying that it will look like an exercise in self-promotion, but if you don’t measure it, you can’t manage it. That’s why we were excited to pursue B Corp accreditation – it holds you accountable for continuous improvement.”
To B or not to B?
B Corp takes the concept of business as a force for good to the next level; doing well, i.e., making a profit, should be the result of doing good. Businesses don’t have to feel guilty that they’re seeing the benefits of being ethical because profit and purpose are balanced – the more profitable you are, the more purposeful you can be.
People want to work with businesses that have strong social and environmental commitments – so attracting talent, staff retention, and customer loyalty are just some of the ways B Corps have reported improvement.
Research by B Lab UK also shows that the average annual turnover growth for B Corp-certified SMEs was 24%, compared to the 3% average for all others.
Muckle is only at the start of its B Corp journey, but Hugh says the firm has seen the benefits of its long-term community strategy reap rewards over the years: “Last year we were named as the ‘Best Place to Work’ for the second year in a row at the North East Business Awards, I feel confident in saying being a responsible business played a part in that. Becoming a B Corp is a natural progression in our journey toward a more sustainable and responsible legal practice, and it will be interesting in 12 months to see how we’ve built on and adapted it as part of that journey.”
Read our B Corp 2024 review to learn about some of the charities we've worked with.
If you’d like to speak to Muckle about its journey, contact Hugh Welch at [email protected]