For years, environmental metrics have dominated the ESG conversation, such as carbon targets, emissions disclosures and energy efficiency benchmarks. Over the past couple of years, a subtle yet significant shift has been gaining momentum and in 2025, it’s becoming impossible to ignore: despite the volatility in the ESG landscape, leading companies are turning their focus inward and outward, to people. In a world where stakeholders expect more transparency, integrity and impact, workforce well-being and community stewardship are no longer add-ons. They are essential indicators of business strength and business longevity. Social impact, encompassing fair working conditions, labour rights, diversity and inclusion, human capital development, and community engagement, is now widely recognised as a key driver of corporate performance. In today’s stakeholder economy, companies are finding that the way they treat people is a reflection of their values, resilience and readiness for the future. In this blog, we explore how organisations can turn social principles into performance outcomes, the key areas that require focused action, and how Rimm’s platform supports implementation through guided assessments, data collection and progress tracking, all with clarity, confidence and credibility.
Why Social Impact Matters to Business Strategy
The link between social responsibility and business success is clearer than ever. Companies that prioritise people-centric values, across employees, suppliers, customers and communities, tend to outperform their peers in resilience, reputation and retention.
According to Edelman’s Trust Barometer (2024), 69% of consumers now buy based on a brand’s values, with transparency and social fairness topping the list. A separate Gallup study found that companies with highly engaged employees see a 21% increase in profitability and a 17% boost in productivity. This data underscores a broader reality; businesses can no longer ignore the social dimension of ESG without risking competitive disadvantage. From supply chain disruption to reputational damage, the cost of social neglect is growing fast in today’s business environment.
What’s driving this shift?
- Heightened expectations: Employees expect more than salaries; they want purpose, flexibility and inclusion.
- Global supply chain scrutiny: While regulatory priorities are shifting, expectations around ethical sourcing, labour standards and due diligence remain high from both investors and corporate partners.
- Evolving regulation: Governments are requiring disclosures on social issues such as workforce diversity, pay equity and supply chain risks.
- Reputational risk: In an age of social media and digitization, a single misstep can trigger widespread backlash.
Ultimately, businesses are learning that strong social performance builds resilience and earns trust, a currency that pays dividends far beyond quarterly earnings.
Where to Focus: The Pillars of Social Impact
Social issues are nuanced and context-specific, but several areas consistently emerge as priority touchpoints for organisations serious about driving positive human outcomes:
1. Employee Experience and Well-being
Your workforce is your front line and a healthy, engaged workforce is key to strong performance. Tracking and improve metrics such as those listed below are essential to:
- Employee satisfaction and engagement scores
- Health, safety and well-being programmes
- Access to training and development
- Mental health support and psychological safety initiatives
The COVID-19 pandemic made one thing abundantly clear: employee well-being is non-negotiable. In the post-pandemic era, hybrid work, flexibility and wellness programmes are not perks, they’re strategic levers.
2. Equity, Diversity and Inclusion (DEI)
Diversity isn’t just the right thing to do, it drives results. McKinsey’s 2023 research found that companies in the top quartile for gender diversity on executive teams were 39% more likely to outperform their peers on profitability. Key DEI performance indicators include:
- Representation across roles and leadership
- Pay equity assessments
- Inclusive hiring and promotion practices
- Sentiment analysis from employee feedback and engagement surveys
But numbers alone don’t paint the full picture. Listening, dialogue and inclusive culture-building are just as important.
3. Ethical Labour Practices and Human Rights
Global supply chains remain under a magnifying glass. Companies face increasing pressure to ensure the ethical treatment of workers throughout their supplier networks.
Leading organisations are:
- Mapping supplier tiers and identifying high-risk geographies
- Auditing for modern slavery, child labour and unsafe working conditions
- Establishing grievance mechanisms
- Providing supplier training and improvement plans
With regulations such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) on the rise, companies can’t afford to be reactive; they must proactively engage with suppliers to build responsible value chains.
4. Community Engagement
The concept of a social license to operate is no longer theoretical. Stakeholder capitalism demands that businesses invest in the communities they affect.
Meaningful community initiatives might include:
- Direct investment in local infrastructure or education
- Skills training and job creation programmes
- Strategic partnerships with NGOs
- Dialogue with affected communities
Beyond philanthropy, community engagement is about mutual benefit. Companies that contribute to societal well-being earn trust and stability in return.
Measuring the Human Side of ESG: Why It’s So Hard
Despite its growing prominence, social impact remains the most difficult part of ESG to quantify. The challenges are real:
- Lack of standardisation: Unlike carbon emissions, there’s no universal metric for “inclusion” or “community impact.”
- Data fragmentation: Social data is often siloed across departments such as HR, procurement, and CSR and is rarely consolidated.
- Qualitative nuance: Narratives, perceptions and lived experiences matter as much as data points.
- Varying stakeholder expectations: Investors, regulators and employees may all want different social outcomes.
The result? Organisations struggle to set clear targets, track performance, or report with confidence.
How Rimm Translates Values Into Measurable Impact
At Rimm, we believe social performance is not only measurable, but it’s actionable. Our ESG intelligence platform gives companies the tools to:
- Define material social metrics based on industry, geography and stakeholder needs
- Benchmark against global peers and ESG standards
- Visualise human-centred KPIs with dynamic dashboards
- Capture qualitative context and stories alongside quantitative data
- Build reports that resonate with investors, employees and communities alike
Whether tracking workforce wellness or mapping supplier risks, Rimm offers the insights needed to turn purpose into performance.
From Compliance to Leadership
We’re seeing a powerful trend across our client base, whereby companies are no longer satisfied with ticking boxes. They want to lead with integrity, engage authentically and deliver lasting value.
With Rimm’s platform, businesses are:
- Elevating their ESG ratings by embedding social governance
- Attracting and retaining top-tier talent through culture-first strategies
- Managing risk proactively across complex global operations
- Enhancing stakeholder trust through transparency and action
Social leadership isn’t just about avoiding harm, it’s about creating good and in a fast-moving world, that’s a leadership edge few can afford to ignore.
It’s Time to Reframe the Conversation
The conversation around ESG is changing. It’s no longer just about climate disclosures or compliance, it’s about people and how we treat them.
In this landscape, social impact is business impact. Companies that embrace this truth, measure it meaningfully and act decisively will shape the future of responsible growth.
At Rimm, we’re here to help organisations lead with purpose by putting people at the heart of ESG.
Ready to rethink ESG through a human lens? Speak to our team today 👉 here
