The S in ESG: A Guide to Measure and Track Social Issues in ESG

When people discuss ESG (Environmental, Social, and Governance), the conversation often becomes heavily weighted toward environmental initiatives or governance frameworks. The “S” or the “Social” in ESG, representing social responsibility, sometimes takes a backseat despite being the glue that holds sustainability efforts together. Why is this the case? It’s partly because environmental and governance metrics are easier to define, regulate, and measure. Social metrics, on the other hand, are broader, more subjective, and harder to quantify. Yet, overlooking the social component is a mistake—because at the heart of every company’s operations are people.

Social responsibility in ESG focuses on how a company manages relationships with its workforce, the communities it operates in, and broader societal stakeholders. It’s not just about ethics; it’s about achieving long-term sustainability by ensuring trust, accountability, and positive impact on society. For sustainable investors, companies that prioritise social factors often deliver stronger, more reliable returns, making the “S” a critical factor in decision-making.

What is Social Responsibility in ESG and Sustainability?

Social responsibility in ESG refers to a company’s ethical obligation to contribute positively to society while minimising harm. This involves addressing a wide range of issues, from diversity and inclusion in the workplace to fair labour practices, community engagement, and human rights. In the context of ESG, social responsibility goes beyond compliance—it’s about proactively building a framework that ensures business practices benefit both internal stakeholders, like employees, and external stakeholders, such as local communities and society at large.

For instance, tracking diversity metrics reveals whether a company fosters inclusive hiring and promotes equity within its leadership. Measuring employee satisfaction and turnover rates highlights whether wellbeing and engagement are prioritised. Social metrics also extend to supply chain accountability, ensuring suppliers uphold fair labour practices. By monitoring these indicators, companies can identify areas for improvement and align their operations with sustainable social goals.

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Key Social Metrics in ESG Social Issues

Social metrics in ESG provide measurable insights into a company’s impact on its workforce, community, and society. These metrics are essential for tracking progress in social responsibility initiatives and identifying areas for improvement. While the specific metrics may vary across industries, the following key indicators are widely used:

Diversity and Inclusion

This metric measures representation within an organisation, focusing on underrepresented groups across various levels, including leadership, management, and general staff. Diversity and inclusion metrics highlight how well a company promotes equitable opportunities regardless of gender, ethnicity, age, or disability. 

Measurable Metrics:

Percentage of women in leadership, minority representation, and hiring practices to identify gaps and create targeted inclusion strategies.

Pay Equity

Pay equity examines whether employees are compensated fairly for their roles, considering factors such as gender, ethnicity, and geographical location. 

Measurable Metrics:

Gender pay gaps, comparative living wages, and equitable bonuses provide insights into compensation practices. Transparent pay equity policies ensure fair treatment and reduce the risk of workplace dissatisfaction or attrition. 

Employee Wellbeing

Employee wellbeing metrics measure how effectively a company supports the physical, mental, and emotional health of its workforce. This includes tracking access to health and safety programmes, mental health resources, flexible work arrangements, and work-life balance initiatives. 

Measurable Metrics:

Surveys like employee net promoter scores (eNPS) and self-reported happiness scores provide qualitative data on how employees feel about their workplace environment. 

Labour Practices

This metric evaluates an organisation’s adherence to ethical labour standards, such as adopting human rights policies, ensuring safe working conditions, and maintaining fair severance practices during layoffs. 

Measurable Metrics:

Metrics include compliance with international labour laws, supplier audits for fair labour practices, and grievance resolution mechanisms. 

Community Engagement

Community engagement metrics reflect how a company contributes to the welfare of the communities it operates in. These include investments in charitable initiatives, volunteer programmes, and partnerships with local organisations. 

Measurable Metrics:

Tracking the percentage of profits allocated to community programmes, the number of volunteer hours logged by employees, or the impact of specific projects demonstrates the company’s commitment to social responsibility. 

Employee Development

Employee development focuses on measuring the resources invested in training and career growth opportunities for employees. Investing in skill-building not only empowers employees but also improves company’s performance by creating a more capable and adaptable workforce. 

Measurable Metrics:

Metrics include the annual training budget per employee, the number of training hours provided, and internal promotion rates. 

How Do You Collect Social Sustainability Measurement Data?

Measuring social sustainability requires collecting qualitative and quantitative data on how well a company supports its people and the broader community. Surveys, audits, and reports are common tools to gather insights into employee satisfaction, workplace inclusivity, and community impact. Key measurements include:

Policy Adoption

Evaluating existing policies is the foundation of social sustainability measurement. A strong policy framework provides a roadmap for actionable initiatives and a benchmark for tracking progress. Regularly updating these policies to reflect evolving societal expectations is essential for long-term success.

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Stakeholder Surveys

Gathering direct feedback from stakeholders is a powerful way to assess social impact. Surveys and interviews provide valuable qualitative insights into how employees, customers, and communities perceive an organisation’s actions. Key examples include:

• Employee Satisfaction Surveys
• Community Feedback
• Stakeholder Interviews

Impact Reporting

Impact reporting quantifies how a company’s initiatives translate into measurable benefits for its workforce and community. This involves tracking metrics such as:

• Training Hours
• Volunteer Contributions
• Gender Pay Gap
• Access to Benefits

Comparative Benchmarks

Benchmarking involves comparing your organisation’s performance against industry standards or global frameworks like the UN Sustainable Development Goals (SDGs). Benchmarking not only highlights strengths but also identifies areas where improvements are needed, driving continuous development in social sustainability. Examples include:

• Diversity Benchmarks
• Living Wage Standards
• Health and Safety Metrics

Building a Socially Responsible Future

The “S” in ESG is essentially a philosophy to embed into every aspect of your business. From inclusive hiring practices to community partnerships and robust employee wellbeing programmes, prioritising social responsibility strengthens your company or organisation at its core. When companies align their operations with meaningful social goals, they don’t just succeed—they lead by example, creating lasting positive impacts on their people and the communities they serve.

But achieving meaningful social impact requires more than good intentions. It demands clear strategies, actionable metrics, and transparent reporting that align with global standards. This is where Elite Asia’s ESG Solutions can make a difference. From comprehensive consultation to devising customised ESG strategies and crafting transparent, data-driven reports, Elite Asia ensures your company/ organisation not only meets expectations but exceeds them. If you’re ready to transform your ESG vision into tangible results, let Elite Asia guide you every step of the way.