The world has witnessed a massive shift in how we look at corporate responsibility over the past few years. Gone are the days when businesses were solely focused on maximizing profits without any regard for social and environmental impact. Today, the focus is on creating sustainable and socially responsible businesses that prioritize not only profit but also people and the planet. The concept of Environmental, Social, and Governance (ESG) is increasingly gaining importance, but what about mental wellness? and why is it important for businesses to consider mental wellness and ESG together?
Firstly, let's understand what ESG means. ESG refers to the three pillars of sustainability that businesses should consider when making decisions. The "E" stands for environmental, which includes a company's impact on the environment, such as greenhouse gas emissions and waste management. The "S" stands for social, which is a company's impact on society, such as employee relations and community involvement. The "G" stands for governance, how a company is governed, such as board diversity and executive compensation.
Mental Wellness on the other hand refers to a state of emotional and psychological well-being. In recent years, the importance of mental wellness has been increasingly recognized, and it's becoming more evident that a healthy workforce is essential for the success of any business. Here are some reasons why mental wellness and ESG should go hand in hand:
What is the link betweenMental Wellness and ESG?
1. A healthy workforce is more productive
Our mental health is deeply connected to the environment around us. Studies have shown that exposure to natural environments, such as parks and green spaces, can have a positive impact on our mental health. Spending time in nature can reduce stress levels, improve mood, and increase feelings of well-being. In contrast, exposure to polluted environments and noise pollution has been linked to negative impacts on mental health, including depression, anxiety, and other mood disorders. Numerous studies have shown that a healthy workforce is a more productive workforce. Mental wellness is a crucial component of overall health, and companies that prioritize mental wellness can see increased productivity, higher job satisfaction, and lower turnover rates.
According to a study by the World Health Organization, depression and anxiety disorders cost the global economy $1 trillion per year in lost productivity.
Therefore, investing in employee mental wellness is not only the right thing to do but also makes good business sense.
2. Mental wellness is a social issue
Mental wellness is an issue that affects society at large. Companies have a social responsibility to address mental wellness issues, just as they have a responsibility to address other social issues such as poverty and inequality, particularly within their supply chain and the communities in which they operate. By prioritizing mental wellness, businesses can make a positive impact on society and contribute to a healthier and more resilient workforce.
3. Mental wellness is linked to environmental and governance issues
Mental wellness is not only a social issue but also linked to environmental and governance issues. For instance, a company that has a toxic work environment that leads to stress and burnout can negatively impact the environment by causing increased emissions due to reduced efficiency. Moreover, companies that don't prioritize mental wellness could face governance issues, such as ethical concerns around employee treatment and retention.
So what can leaders do to prioritize mental health and sustainability?
1. Acknowledge the importance of mental wellness
Mental wellnessand associated illnesses have long been stigmatized and even worse, dismissed as nothing more than a state of mind. To normalize mental wellness, leaders need to openly and loudly acknowledge both the importance and impact of mental wellness in the workplace. Without this support, many initiatives will fall flat and viewpoints remain unchanged.
2. Create a culture of well-being
Leaders can promote a healthy work-life integration by encouraging employees to take breaks, ideally outside. Getting away from desks and moving has been proven to positively impact not only our mental health but also our long-term cognitive abilities. Providing working spaces near natural light is both positive for our health and the environment as there's a reduced need for artificial lighting. Involving employees in promoting eco-friendly initiatives, such as reducing waste and carbon emissions can have a hugely beneficial impact on both employee engagement and sustainability credentials.
3. Offer mental wellness resources
Leaders can provide employees with access to mental wellness resources, such as an employee assistance program (EAP) or counselling services. These resources can help employees cope with stress, anxiety, and other mental health issues. Leaders can also encourage employees to take advantage of mental health days or flexible work arrangements to support their well-being. Multiple studies have shown that this flexibility can have a hugely positive impact on productivity, engagement and retention. Google Inc. is renowned for its 20% program and innovation days where employees get to spend time working on passion projects and other innovations away from the office and their day jobs. Whilst innovation was the driver in this instance, mental health has been a large secondary benefit of these programs for the company which gave us Gmail, Google News and many more.
4. Incorporate mental wellness and sustainability into company values
Leaders can incorporate mental wellness and sustainability into the company's values and mission statement. This can help create a sense of purpose and meaning for employees, and demonstrate the company's commitment to these important issues. Leaders can also integrate mental wellness and sustainability considerations into decision-making processes, such as product design and supply chain management.
5. Lead by example
Probably one of the most important things leaders can do is lead by example. Nobody expects them to be infallible and in fact, increasingly it is vulnerability, empathy and environmental awareness that are seen as key leadership traits. This can inspire employees to do the same and create a positive culture that supports well-being and sustainability. Leaders can also encourage open and honest communication about mental wellness and sustainability issues in the workplace, and provide opportunities for employees to share their concerns and ideas.
6. Collaborate with stakeholders
Leaders can collaborate with stakeholders, including employees, customers, suppliers, and community members, to prioritize mental health and sustainability. This can involve engaging in open and transparent communication, soliciting feedback, and working together to develop sustainable solutions that benefit everyone. Leaders can also promote mental wellness and sustainability initiatives through marketing and outreach efforts, demonstrating their commitment to these important issues.
Companies that prioritize mental wellness can reap the benefits of increased productivity and lower turnover rates while making a positive impact on society and the environment. Mental wellness is a social issue that affects everyone, and businesses have a responsibility to address it. By considering mental wellness and sustainability together, companies can create a sustainable and socially responsible business that contributes to a healthier and more resilient workforce and a better world.
About the Author
Kathryn is the founder of Realise Change, a B Corp certification and HR consulting practice helping SME leaders and entrepreneurs build profitable, people and planet-focused businesses.
With nearly 2 decades of global corporate HR experience, and her passion for sustainability, Kathryn's experience and knowledge provides a valuable resource for business leaders to build forward-thinking, resilient practices that are aligned with the highest standards of social, governance and environmental standards set by B Corporations globally.
Kathryn is recognized by clients as a true business partner, ready to roll up her sleeves and work hand-in-hand towards a successful outcome for each business. Connect with her here
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