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| 1 minute read

Leadership in the Labor Shortage: How Meaningful ESG Drives Performance

In this two-part series with David Gilbertson, Shawn Miles, Tom Crawford, and John Frehse we explore what really keeps executive leadership teams up at night and how it relates to prolonging the labor shortage. In the first video we discuss what ESG is and why it matters. Much of the global population is still unfamiliar with the term, even as these issues impact everyone. So what is it?

ESG is the term used for the range of issues that can stop businesses from having the right to operate. Whether it is popular environmental causes, issues of social justice, or appropriate governance behaviors, companies are more concerned with how social activists will view their operations than they are whether governments will shut them down. This is largely due to the increase in power social activists enjoy based on better social media presence and awareness of communities in their causes both locally and globally. Do they have the right diversity, equity, and inclusion programs and processes? Are they a polluter – even if what they do complies with the laws and regulations where they operate, that may not be enough to satisfy social activists? And do they follow the local laws and customs?

Executive leadership teams need to be ahead of these issues. They must be connected to community leaders and working in real and meaningful ways before negative events occur. This allows community leaders to help navigate the storm and validate the actions of companies in trouble. A longer horizon of good works goes a long way when a single issue occurs and local leaders can validate these companies as positive members of the local ecosystem.

It is no longer enough to just follow the laws where one does business. Companies must do more if they are to protect their freedom to operate.


video, labor strategy, operations, f-performance, f-transformation, esg advisory, culture lab

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