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There are certain factors that organizations should incorporate to satisfy their stakeholders, including investors, customers, and employees. Environmental, Social, and Governance (ESG) criteria are often used by investors to screen potential investments based on a company’s behavior as a part of sustainable and socially responsible investing. This—amongst other reasons—has made ESG initiatives increasingly important to organizations. Here’s what each criterion involves:
- Environmental criteria consider how an organization impacts the planet, including how much energy they use, how much waste they put out, the resources they require, and whether they implement any policies to address climate change. The main focus here is to reduce the organization’s carbon footprint.
- Social criteria consider how an organization manages the relationships it has with the people and communities it is involved with. This includes how the organization treats its employees, customers, suppliers, and those in the communities they do business in. The main focus here is the effect an organization has on the people involved with it and how those people view the organization in return.
- Governance criteria consider how an organization is operated. This involves the organization’s leadership, how executives are paid, shareholder rights, internal controls, audits, and more. The main focus here is how a business is operated by those in charge.
Each organization has its own ESG initiatives that are specific to its unique business model, so not all of them will be the same. However, sustainable decisions are at the core of all ESG initiatives and are becoming more important than ever before. In fact, global sustainable investment is now over $30 trillion. This is because consumers are paying closer attention to the all-around impact an organization has as it conducts business.
How do relief funds relate to these ESG initiatives? They can be an important component of an organization’s social initiatives.
Relief Funds and Social Initiatives
In the last few years, over 47 million workers around the United States have quit their jobs in what has come to be known as the “Great Resignation.” The majority of these individuals left their employers because they sought a workplace with more flexibility, they wanted a more rewarding and fulfilling position, or they wanted more of a commitment to social impact by the organization.
As workers demand more flexibility and better treatment, it’s more important now than ever before for organizations to take care of their team members. This is where social initiatives come into play. Social initiatives can take many different forms, including promoting diversity, equity, and inclusion (DEI), investing in workers’ well-being, improving labor policies, pay equity, volunteering in the community, and even establishing relief funds.
Relief funds are established by organizations to provide financial assistance to team members in the event of disaster or personal hardship. When an organization establishes a relief fund, it is demonstrating that it cares about the well-being of its team members and their families. By sponsoring a relief fund program, the organization is preparing ahead of time to be in a position to support individuals that are impacted by a disaster or personal hardship.
How Establishing a Relief Fund With EAF Can Help Your Organization’s Social Initiatives
It’s always been important for companies to treat their employees well, but there has been an even bigger focus placed on taking care of team members in the last few years. Establishing a relief fund is a great way to do this.
In the aftermath of disaster or hardship, your organization needs to be able to help impacted team members rebuild and recover from the potentially devastating impact. A relief fund can boost morale and allow for your internal communities to contribute directly to the support of fellow team members. Establishing a relief fund can alleviate the stress that disasters and hardship put on those within your organization and allow them to stay focused on recovering from the event.
If your organization is interested in establishing a relief fund, consider establishing a fund with Emergency Assistance Foundation today. As a financial first responder, we are resourceful and fearless in ensuring that financial assistance reaches individuals in need, no matter the unique circumstances involved.
By establishing a fund with us today, your organization can take action on your social initiatives and assist members of your team affected by natural disasters and other hardships. Relief fund grants can help impacted individuals pull through difficult times and start on the path toward recovery. If you’d like to learn more about how your organization can help your team during difficult times, you can review additional information about how a fund works or contact us today. We look forward to helping you make a difference for those who need it most!