When and if companies master this art, organizational growth and sustainability are inevitable, translating into the development of the economy.
The Ghanaian Economy has recently been hard hit by several Global and Domestic factors, which have increasingly caused uncertainty among investors and the general populace. COVID-19, breaks in the world supply chain and management, has exerted enormous negative pressure on the Ghanaian economy. After the discovery of oil in 2007, the economy experienced some considerable gains over the years. According to finance minister Ken Ofori-Atta however, Ghana imports over 5 times the value of its crude oil exports, essentially numbing the effects of oil discovery and export of crude.
The Economy needs a solid foundation that may be embedded in fiscal policy, directed at boosting investor confidence, strengthening local currency, and increasing GDP.
ESG provides the answer! These are some benefits the Ghanaian economy could derive from implementing ESG strategies.
1. Efficiency and Cost Reduction
ESG adopts a set of standards by which companies can measure pertinent parameters such as consumption of raw materials, energy use, waste management, and the like. In doing this, organizations are able to plan the most efficient ways of using resources while streamlining the aptest and most cost-effective ways to manage waste. This ultimately ensures a reduction in cost and increased efficiency. When and if companies master this art, organizational growth and sustainability are inevitable, translating into the development of the economy.
2. Investor Attraction and Confidence
Investors have in recent times gravitated towards organizations with some sort of an ESG program running or being planned. The sophisticated taste of investors has come to include a need to place a higher premium on Environmental, social, and governance issues, which form the bedrock of ESG. ESG reporting also gives investors another level of analysis based on which investment decisions can be made.
3. Talent Acquisition
The typical employee of today does not just consider, salary and bonuses. There is a sense of fulfilment that employees typically yearn for, a feeling of being part of a bigger picture, the greater good. This is what ESG offers. ESG cultivates a corporate culture that accommodates employees of all sorts and promotes equity and inclusion. Employees also have the responsibility and opportunity to be part of a framework that contributes to the well-being of society and the environment.
Organizations are increasingly becoming socially concerned, environmentally responsible, and developing sound corporate structures through ESG.
Is Ghana ready for the ESG revolution?
Great insights!