ATLANTA, GA – May 04, 2022 – There is a growing trend among companies to adopt environmental, social, and governance (ESG) policies focused on supporting positive initiatives in these core areas. Many experts believe that companies who adopt these policies are more likely to succeed in the long run due to a number of variables such as enhanced employee engagement and consumer preference. We spoke with Deepak “Dee” Agarwal, successful entrepreneur and business leader, on the importance of operating a business in a way the drives positive impacts for broader society.
Deepak “Dee” Agarwal has a history of leveraging the success of his business ventures to create meaningful changes for communities in need. While operating ContactCenter.com, Deepak Agarwal worked with World Vision, an organization focused on fighting hunger in impoverished areas of the world, to sponsor one child for every employee of the company — resulting in the sponsorship of 1,500 children.
In addition, Deepak Agarwal’s contributions and grants to Vitamin Angels continue to support the fight against world hunger by funding a free 6-month supply of vitamins for children in need for each purchase of specified vitamin brands, with the goal of reaching more than 1 million children. When asked about his commitment to philanthropy, Deepak Agarwal shares, “It’s so rewarding to operate my businesses with giving back and making a lasting impact at the forefront of our mission. I’m thankful to both World Vision and Vitamin Angels for the work they’re doing to fight against world hunger, and I’m especially thankful that I was able to play a role supporting their mission.”
There are several reasons why companies with ESG commitments and policies are more likely to succeed, such as higher levels of employee engagement, risk reduction, and consumer preference. Leveraging his extensive philanthropic efforts, in combination with his experience leading several organizations, Dee Agarwal recently shared thoughts on the importance and value of ESG commitments and efforts.
Employee Engagement, Retention and Attraction
One key indicator of overall performance of a business is employee engagement, with studies showing that engaged employees are 17% more productive, 21% more profitable, and have a 41% lower absenteeism rate. The policies that focus on the environment, social responsibility, and good corporate governance also tend to lead to cultures within organizations that are healthy, collaborative, and inclusive, resulting in a higher level of employee engagement.
Deepak Agarwal adds, “When employees feel like they are part of a team working towards a common goal, whether saving the environment, combatting world hunger, or increasing access to education, they feel more invested in their work and are more likely to perform at a high level.”
In addition to increasing employee engagement, having these kinds of policies in place helps an organization retain and attract top talent. Many of the best and brightest employees want to work for companies doing well globally and positively impacting society. Employees are also more likely to stay at a company if they feel that the company’s values align with their own.
Companies with ESG policies tend to be more resilient to economic fluctuations. This is in part due to strong community relationships and the built-up of goodwill with consumers, stakeholders, and suppliers, providing better access to resources. Additionally, these companies often have strong relationships with the state, reducing the risk of government regulation and intervention.
Deepak Agarwal shared, “When your consumers and stakeholders identify and align with your organization’s values, you’re in a better position to succeed as you have your consumers and community’s support. It’s no secret that increased public support and goodwill can lead to improved financial performance over the long term.
Consumers are becoming increasingly aware of the role that businesses play in society and are looking for brands that support social causes and are committed to making a positive impact.
“Businesses that don’t adopt ESG policies are at risk of being left behind,“ added Deepak Agarwal. “More and more consumers become conscious of their choices, and want to support companies that do good business and do good for society.”
Companies with a commitment to environmental, social, and governance causes are likely to be successful for an array of reasons, namely having healthier and more inclusive cultures, sustainable and business practices, and a strong relationship with their communities, government, and consumers. It’s clear that consumer preference for organizations that are doing their part to benefit our world is a trend that will only strengthen over time, resulting in the elevation of businesses with ESG policies.