Tiina Saukko, founder of Infine, explores the cornerstones and pitfalls of corporate responsibility in her blog series. This time, she reflects on business resources and relevant sustainability data.
Companies that value themselves aspire to be more than just “compliant with laws and regulations” and “transparent in our operations.” To achieve this, leadership based on responsible data is essential.
Sustainability information and its impact can be divided into five categories: social, environmental, climate, good governance, and economic sustainability.
Relevant sustainability data is derived from the company’s core business, which includes the production process, origin, raw materials of the products sold, and logistics. Although activities like offsetting, donations, and community involvement are important, they do not constitute the core of responsibility.
Broadly speaking, responsibility also extends to the effects beyond contractual relationships. For example, one can assess the business model itself—fast fashion as a business model is not responsible, no matter how sustainably it’s produced. To illustrate with a single example, the fashion industry generates more carbon emissions than international aviation and shipping combined.
Responsible Data and Good Corporate Citizenship
A company must also ensure its integrity as a legal entity, similar to the due diligence process. In responsibility, particular attention is paid to whether the company has valid contracts and guidelines that consider aspects of sustainability concerning employees and subcontractors. “Check-the-box” ESG assessments, such as whether an HR handbook or Code of Conduct exists, are not very meaningful without qualitative evaluation.
Paying taxes and fulfilling other “corporate citizenship” obligations should be done according to the law and Western moral standards. The accuracy of marketing and communication is also part of responsibility. In condensed communication, much is always left unsaid, so marketing claims must be based on both factual and relevant sustainability characteristics.
Responsibility is easy for those using common sense—an aware person knows what’s right. Understanding cause and effect is central to responsibility. Simply having a sense of continuity and grasping the bigger picture can get you far since the effects of business decisions are ultimately systemic.
Tiina Saukko
The author is the founder and CEO of Infine, with over 20 years of experience in product responsibility, responsible marketing, and corporate responsibility.
