OPINION: A stakeholder culture is critical in enhancing ESG

By Ronald Benjamin

Quite a number of companies in Malaysia are embracing the concept of ESG in principle.

ESG stands for Environmental, Social and Governance. This is often called sustainability. In a business context, sustainability is about the company’s business model,on how its products and services contribute to sustainable development.

One of the critical factors that would help enhance ESG principles in an organisation, is the type of culture that would enable an organisation to reach out to the community.

The principles of sustainability have the community and common good in mind.

The underlying notion of environment ,social and governance is beyond the ideal of mere profits.

This requires a dynamic culture that is very much aware of environmental conditions,social justice ,and governance that is fair to employees and the community as whole.

Stakeholders play a critical part  unlike the system of old where shareholders interest takes precedence,

Unless there is a dynamic organisational culture where everyone who is part of the organisation understands their role, that is rooted in  community awareness, whatever effort is done would remain a public relation exercise that is devoid of substance.

The Hospitality industry that has  interactive characteristics in its culture has great potential in this aspect.

One of those companies that has embarked on enhancing its culture is Weil Hotel Ipoh.

The hotel has embraced the concept of ESG ,and has  taken the crucial steps to enhance its culture through the formation of employees who are called associates.

It has embraced three key enabling cultural principles, of  inspire, enliven and enrich ,which starts with its own associates,before it reaches out to the community.

These cultural practices are embodied in the actions of its associates in engaging with the external guest with respect and care.

It has reached out to the community in terms of contribution in reducing the carbon footprint.

For example the hotel uses composting technology where it converts food waste into 20kilograms of compost daily,amounting to 7300 kilograms annually. This effort aims to reduce landfill waste .

By managing  food waste innovatively, the hotel intends to reduce methane gas emissions and help slow climate change.

This helps in a small way to protect the environment,besides the opportunity to enhance farming activities.

This action has  inspired an innovative approach to protect the environment.

In terms of social governance It conducts a monthly wellness program that focuses on the health of its associates.

it rewards workers for good performance irrespective of nationality through the associates of the month and year award,and welcomes diversity  by encouraging talented foreign workers to showcase their culture and  talent in events.

It governs by adhering to the principles of ESG, by ensuring materials purchase are of environmental value.

In a nutshell it demonstrates an inspiring,enliven and enriching culture that compliments the ESG

One would not be  able to start an initiative if there is no inspiration, the situation will not change if people are not enliven, people will not contribute unless their lives are enriched.

It is hoped that more small and medium size companies in the country will work towards a culture that would enable it to embrace the concept ESG that ultimately serves the common good.

The stakeholder culture that is community oriented  is critical in enhancing ESG.