‘S’ for Social License to Operate

The ‘S’ in the ESG trifecta stands for Social, which is a shorthand of sorts. Social is ‘Social License to Operate’ where buy-in from your employees, consumers, communities, and vendors in a Global Value Chain is a dynamic process, and it needs a F5 routinely.

With the advent of the digital, each stakeholder is a whistleblower with a camera phone. Reputational risk impacts the brand, and in turn valuation. That should be a material rationale for the ‘fuzzy’ S.

A lot of companies conduct social listening to gauge sentiment to measure reputations.

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