Social Irresponsibility: The Ultimate Threat to Your Business

Ben Biles • July 20, 2021
Social Irresponsibility: The Ultimate Threat to Your Business
Let us help you with your ESG Goals

The wave of ESG investing has expanded tremendously in recent years, but some companies still aren’t convinced. What many critics neglect to remember is that ESG isn’t just about values – It’s about long-term risk management too. 


As regulations tighten and consumer preferences shift, companies that don’t take ESG considerations into account could face government action, reputation-hurting public scandals, and even lawsuits .


These potential pitfalls can hurt short-term returns and degrade a business’s long-term value. Thus, companies that fail to make progress on ESG goals may end up excluded from consideration by many investors. (Larry Wieseneck)


What are ESG risks?


ESG issues deserve heightened attention for companies that want to maintain long-term value and align with shareholder interests. Here’s what we know about the risks and the cost of ignoring them: (Morningstar)


Environmental


Corporate management of environmental risks plays a critical role in assessing firm sustainability. The way in which business models are adapted to environmental and regulatory change can make or break an investor’s decision. 


Companies that are not environmentally friendly could be subject to greater government regulations, which can include tax increases or raises on emission fees. 


Environmental issues can directly damage brand equity too. Litigation tends to follow environmental disasters, such as the BP oil spill, which can be a real blow to company capital. 


If nothing else, it’s important to remember that every business should have an environmental risk management plan – Not just the resource and energy industries. 


Consumer preferences have seen an immense surge in environmentally friendly products and firms. Taking measures to prepare, advance or support environmental goals can provide a competitive advantage. 


Social 


Social risks typically involve the impact a company has on all of its stakeholders, which include employees, customers, suppliers, and local communities. 


The nature of the relationship between a business and its stakeholders can shift public trust and brand equity – For better or for worse. 


While social risks comprise a variety of issues, here are some common concerns to note: 


  • Data Security
  • Product Safety
  • Workplace Safety
  • Diversity 
  • Compensation
  • Benefits


Managing and responding to these risks effectively is imperative for corporate sustainability. 


Governance 


Strong corporate governance is in the best interest of long-term shareholders. It promotes accountability and provides transparency. 


Governance failures typically happen when companies place too much emphasis on meeting short-term goals, leaving the interests of long-term investors out of the equation. 


Corporate governance is also threatened when there is a lack of appropriate risk oversight, which can lead to poor capital-allocation decisions and other missteps that threaten sustainability. 



Why should you care?


Social irresponsibility is the ultimate threat to corporate longevity. Given the increased demand for sustainability reporting, every publicly listed company can expect the need to disclose ESG performance metrics to investors and stakeholders. (Robert Hirth – Sustainability Accounting Standards Board)


Further, experts predict that all Wall Street research within 12 months will include an “ESG score.” This means that businesses that are not moving forward with ESG goals could be un-investable.

Let us help you with your ESG Goals!

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Why should corporate recruiters prioritize student veterans in their hiring efforts?

By Ben Biles • April 16, 2024
With 48% of companies ranking recruiting top talent, and 68% reporting difficulty reaching ideal candidates in the recruitment process, organizations are looking for ways to optimize their talent attraction strategies and processes. Prioritizing the recruitment of student veterans is one way that corporate recruiters can tap into a top talent pool that is often overlooked in companies’ recruitment efforts. From excellent academic achievements to prior work experience, here is why recruiters should prioritize student veterans in their hiring efforts. On average, student veterans outperform their non-veteran peers academically. Student veterans are more likely to pursue and graduate with highly sought after business and STEM degrees. Beyond attaining degrees in demanding and complex fields of study, student veterans also earn, on average a 3.35 GPA , in comparison to the non-veteran student average GPA of 3.11. Student veterans have a proven professional track record. Organizations that learn to translate military experience and identify transferrable skills gain a major competitive advantage; many companies overlook or misplace veteran hires because they don’t know what various responsibilities and jobs in the military entail. Student veterans have a proven professional track record from their time in the service, and advanced degrees. While their working experience is specific to the military, the transferrable skills student veterans have developed make them stand out from their non-veteran student peers. Student veterans are diverse candidate pool. The majority of employees report that their employers need to do more to increase diversity at their organizations. Prioritizing the hiring of student veterans enhances diversity and inclusion initiatives within organizations by encouraging inclusive hiring practices and processes. The student veteran pool is made up of a diverse set of candidates, with different backgrounds, creeds, ethnicities; by targeting student veterans, recruiters and organizations can enhance their organizations’ approach to intersectional, inclusive hiring. Military experience instills highly-desirable qualities in student veteran candidates. Student veterans typically have many of the qualities corporate recruiters and hiring managers prioritize in candidates; these qualities are indicative of candidates’ potential and anticipated contribution to an organization. Military service cultivates and requires a strong work ethic , leadership skills, reliability, loyalty, teamwork, problem-solving skills, time-management, and organization. These soft skills, coupled with advanced academic achievement and prior work experience, make for highly desirable candidates. Recruiting top talent is a highly time-intensive, expensive undertaking. As corporate recruiters and hiring managers are considering how to get the most out of their investment in talent, finding candidates who possess both the hard and soft skills that will help make their organizations thrive, prioritizing student veterans in recruitment strategies should be a priority . To learn more about how to best tap into the student veteran talent pool, join American Veterans Group for its virtual panel discussion – VetSuccess: Campus to Career – on April 24, 2024 from 1:00-2:00 pm EST.

VetSuccess Campus to Career: How recruiters can help prevent veteran underemployment

By Ben Biles • April 4, 2024
Today's corporate landscape is missing out on a valuable, yet untapped resource: military veterans. Despite serving in various professional fields and career levels within the military, veterans are still an undervalued talent pool in today’s workforce. According to a recent study by ZipRecruiter and the Call of Duty Endowment, 33% of veterans experience underemployment – meaning they are significantly overqualified for their current position. Despite valuable experience from years of military service, veterans are 15.6% more likely to be underemployed than their non-veteran peers. This doesn’t just apply to veterans entering the civilian workforce straight out of service – veterans with college degrees face underemployment too. Veterans with bachelor’s degrees enter the corporate workforce with twice as much work experience than non-veterans with the same level of education, according to LinkedIn’s “Veteran Opportunity Report.” They’re also three times more likely than non-veterans to have a graduate degree or higher. "Veterans with bachelor’s degrees enter the corporate workforce with twice as much work experience than non-veterans with the same level of education...Despite this, veterans are half as likely as non-veterans to reach senior leadership roles in the corporate world – and even when promoted, their progression is notably slower than their peers." Despite this, veterans are half as likely as non-veterans to reach senior leadership roles in the corporate world – and even when promoted, their progression is notably slower than their peers. According to the same LinkedIn report, on average, it takes veterans two more years than non-veterans to reach their first director or vice president position. This disparity often begins at the campus recruiting level , where student veterans find themselves in entry-level positions that fail to leverage their skills and potential. The disconnect between the skills acquired in the military and the civilian labor market exacerbates this issue, leading to prolonged delays in professional development. Though student veterans may not have experience in a civilian workplace, many have developed critical professional skills during their time in the military that are simply incomparable to the typical college graduate. To combat this critical mismatch, company recruiters must adopt a skills-first strategy when working with student veterans to ensure they are being placed in positions that are appropriately challenging and make the best use of their skills and experience. Skills-first hiring isn't just an act of goodwill for the veteran talent pool — it's a strategic decision for employers. Skills-first hiring can help employers: • Expand their talent pools • Improve equity and representation • Create a workforce adaptable to the changing labor market • Meet the skills demands of changing industries • Bridge the opportunity gap between veterans and non-veterans Military veterans are ready to apply their skills and experience in the civilian workplace but hiring processes are not always ready for them. By being intentional and strategic about veteran hiring, companies can tap into this diverse talent pool and unlock unparalleled value, foster innovation, and promote a culture of inclusivity and growth. To learn more about how to advance student veteran employment, join American Veterans Group's virtual panel discussion, VetSuccess: Campus to Career on April 24, 1-2 pm EST.

VetSuccess Campus to Career: 6 Tactics Corporate Recruiters Should Leverage to Create Pathways for Student Veteran Hires

By Ben Biles • March 28, 2024
More than half of the 200,000 veterans who leave the service each year turn to higher education, with 115,000 veterans enrolling in college annually. Student veterans represent a highly-skilled, competitive talent pool, combining advanced degrees with years of working experience from their time in the service. However, corporate recruiters often struggle to determine how to identify and connect with student veteran candidates, who are more likely than their non-veteran peers to live off-campus, work full or part-time jobs, and have families. While advancing student veterans’ civilian career prospects requires a concerted and coordinated effort by both higher education institutions and hiring organizations, corporate recruiters can more effectively create pathways for student veteran hires using the following tactics. Connect your veteran and early career resources internally. If companies have resources and personnel dedicated to military veteran recruiting and early career recruiting, it is critical that these two entities collaborate. While military veteran recruiters within companies typically have some experience translating military experience, understand military rank and structure, and may be veterans themselves – the early career programs recruiting student veterans likely do not. Conversely, early career recruiters have relationships with universities, have experience connecting with students, and may be more familiar with working with candidates just starting out in civilian careers. The expertise both groups bring to the table makes it more likely that your organization will effectively connect and engage with military veterans, speaking to the unique circumstances and background of this candidate pool. Offer flexible or alternative options to the traditional summer internship. 47% of veteran students have families , and 50% are working full-time throughout school. Consequently, the 12-week summer internship program that many companies offer, designed to fit the more traditional student demographic, is untenable for many student veterans. Providing alternative options like apprenticeships or part-time student roles gives student veterans the chance to get their foot in the door. Take another look at your target schools list. Companies have finite resources to recruit early career candidates. As a result, most organizations will identify target schools, typically those that are geographically proximate to company offices or headquarters, to focus their recruitment efforts on. However, if organizations are looking to specifically recruit student veterans, it’s critical that they include colleges with a student veteran population. Companies should also not necessarily limit their recruitment efforts to four-year institutions; including community colleges and trade schools in your company’s recruitment strategy can create pathways for even more high-quality student veteran candidates. Offer a mix of on-campus and virtual recruiting events. With the diverse needs and circumstances of student veterans, it's prudent to provide networking and recruiting events that aren’t strictly in-person, or on-campus. With many student veterans living off-campus, and potentially less plugged in to on-campus events, companies that offer a healthy mix of in-person and virtual events are more likely to connect with student veterans who may otherwise miss out due to family or work commitments. Stay mindful of skill-matching to prevent student veteran underemployment. Though student veterans may not have experience in a civilian workplace, many have years of work experience through the military, developing critical professional skills that are simply not comparable to the typical 22-year-old college graduate. Veterans are 15% more likely to be underemployed than their non-veteran peers, with 33% of veterans experiencing underemployment. Recruiters need to prioritize skill-matching when working with student veterans to ensure they are being placed in positions that are appropriately challenging and make the best use of their skills and experience. Coordinate with other companies. Collaborating with other companies that share a commitment to hiring and supporting veteran talent can amplify recruitment efforts and expand opportunities for student veterans. This collaborative approach benefits individual companies and strengthens the broader support network for student veterans transitioning into the workforce. Working to advance military veteran employment, and opening pathways for student veterans requires collaboration across the education, private, and public sectors. Together, organizations can move the needle and enhance outcomes for veterans throughout their transition to their civilian life and careers. To learn more about how to improve employment prospects for student veterans, join American Veterans Group’s virtual panel discussion, VetSuccess: Campus to Career on April 24, 2024 1-2pm EST .
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