Can businesses truly change the world? Increasingly, the answer points to yes, but only if they move beyond profit as their sole purpose and embrace a broader responsibility to society. This shift is captured in the growing importance of ESG (Environmental, Social, and Governance) frameworks. While much attention has been placed on environmental commitments, the “S” (the social dimension) is emerging as a decisive factor in generating meaningful and lasting impact.
The social pillar of ESG focuses on how companies affect people’s lives: their workers, customers, and the wider communities they operate in. In a world marked by rising inequality, unemployment, and social fragmentation, businesses are uniquely positioned to contribute to solutions. They create jobs, shape working conditions, influence social norms, and can either reinforce or reduce inequalities. Therefore, their role goes far beyond economic production.
Examples from practice show that socially oriented businesses are not only possible but successful. Companies that prioritize inclusion, fair working conditions, and community well-being often build stronger relationships with stakeholders, enhance their reputation, and increase long-term resilience. The key lies in understanding social impact not as a side activity, but as a core part of business strategy.
Moreover, the “S” in ESG is not just about compliance or philanthropy. It involves actively improving people’s lives through evidence-based actions, what can be understood as scientifically validated social impact. This means measuring not only how many people are reached, but how their lives are genuinely improved. It also requires dialogue: incorporating the voices of workers, users, and communities in decision-making processes.
Ultimately, businesses can change the world when they align their economic goals with social progress. The challenge is not whether they can, but whether they are willing to place people at the centre of their strategies.
Serra Húnter Fellow of Sociology at Universitat Rovira i Virgili.
Former DAAD-Gastprofessorin at Julius-Maximilians-Universität Würzburg