Dubbed as the “Investor Revolution”, there is an ongoing phenomenon where entrepreneurs are pressured into making more sustainable business decisions. It could be a challenge for some to convert their existing operation into one that qualifies with the environmental, social, and government (ESG) goals set by socially conscious investors. Capital is often an issue because of the shift in strategy and demand.
However, on the contrary, business owners have an opportunity to benefit from these new practices. That is, so long as they make the switch smartly and systematically rather than focusing on current trends that could leave them in the dust later on. By adopting affordable eco-friendly technology, focusing on the capabilities of employees rather than potential discrimination lawsuits, and fostering a workplace where effective communication may thrive, entrepreneurs can still meet the criteria set by ESG investors and protect their profit margins.
Using Eco-Friendly Technology
Business owners can minimize the waste produced in their processes by using updated technology. Through the incorporation of efficient equipment such as a cutting machine specific for acrylic materials, the production line can be relatively more eco-friendly because of the accuracy they can provide and, therefore, decreasing the overall waste generated. This initiative can be part of the corporate social responsibility of the company as it responds to the need for adaptive strategies to the changing policy environment.
Although some entrepreneurs may hesitate when it comes to updating equipment, the new techniques can make it cheaper for production to occur in the long run. Older technology tends to be less efficient compared to its novel counterparts, hence the desire for innovation. The new equipment will create opportunities to reduce energy consumption as well as waste generation when dealing with raw materials.
Avoid Affirmative Action, Focus On Capabilities Instead
Despite the call for affirmative action, it can be argued that the movement of being simultaneously racist and self-righteous can do more harm than good in the workplace. It devalues an individual from their actual personality to a mere token that can meet a quota, regardless of their incapability to fulfill their role. Instead, companies should focus on the merits of the individual rather than their ethnicity. After all, this should be the true basis for their compatibility with the job they will be assigned.
The initiative to focus on the actual abilities of the person being considered for the role is an opportunity for entrepreneurs to showcase their inclusivity rather than bigotry. It is a better form of progressiveness within the workplace because it exemplifies the irrelevance of someone’s skin color in accomplishing tasks. Similarly, it can also help provide an avenue for those with physical and mental disabilities to participate productively within society. This can destigmatize the marginalized because it gives them a chance to prove themselves- that they are just as capable as anyone else so long as there is a willingness to perform.
Positive Work Environment Through Communication
Bribing employees does not essentially make a positive work environment. A better method of facilitating a happy workplace is through open communication. It allows sympathy to develop among co-workers, creating a sense of community and responsibility for one another. When an employee can talk to their employer any time and learn that a problem could be resolved immediately, social capital theory believes in the reciprocal tendencies in these types of relationships.
Moreover, when people can express themselves freely with one another, it avoids the negative emotions of feeling repressed or unappreciated. Besides, a human workforce is made up of human emotions that should not be suppressed, lest they be replaced entirely by robots. If a company truly wants to maintain a happy workplace that accommodates all concerns, it will encourage open communication to avoid disputes, disappointments, or instances of falsely disseminated information. Workers are less likely to unionize when they feel valued in the workplace, allowing them to focus more on doing a great job rather than any pent-up hatred toward the management.
ESG may seem like an overwhelming concept at first. But it is an opportunity for entrepreneurship to develop into a more sustainable practice in all aspects because it encourages the acceptance of progressiveness in technology and culture. It does not always have to cost a lot for a business owner to transform their venture into one that can qualify as an ESG investment, so long as they are willing to keep an open mind and try the new technology and etiquette available as part of the improvements in business strategies.