What is the Social (S) pillar of ESG?

In a constantly changing business world, human capital has become one of the most critical and strategic resources for any organisation. It is in this context that the “S” in ESG — the social pillar — assumes increasing importance. Far from being limited to traditional corporate social responsibility, the “S” represents a comprehensive approach to how companies interact with their employees, communities, customers, and partners. And for SMEs, which often rely on proximity and trust, this pillar can translate into a true competitive advantage.

People at the centre of strategy

A company's social performance starts indoors. Fair working conditions, workplace safety, work-life balance, development opportunities, and a culture of respect are factors that, more than attracting talent, retain it. In times of shortage of qualified human resources and increasing professional mobility, companies that invest in their team stand out.

But the social pillar is not just a matter of well-being: it is a critical factor of productivity, creativity, and reputation. A healthy and inclusive work environment boosts innovation, reduces absenteeism, and improves operational results. The strength of an SME often lies in the dedication of its people — and that human capital deserves to be cared for and valued.

Community and value chain

The “S” extends to the relationship with the surrounding community and all external stakeholders. SMEs that create local employment, establish partnerships with regional suppliers, support social institutions, or maintain fair trade practices are building a value network that strengthens their resilience.

Increasingly, customers and partners value companies with an active and positive role in the territory where they operate. Social reputation has become a strategic asset. And, in a scenario where supply chains are being scrutinised under new reporting requirements, integrating social criteria is also a way to ensure business continuity.

Inclusion, diversity, and equity

Inclusive practices are not only ethical but intelligent. Diverse teams — in gender, age, background, origin, or perspective — are better able to understand complex markets and find creative solutions. SMEs that embrace diversity and promote equity gain access to a wider talent pool, improve the organisational climate, and strengthen their institutional image.

Yunit's vision

At Yunit Consulting, we help companies structure their social approach with concrete indicators and clear objectives. Through, for example, the implementation of management systems, continuous improvement of processes is encouraged, which positively impacts employee and customer satisfaction, in addition to promoting better working conditions by systematising internal practices, reducing failures, and increasing efficiency.

Conclusion

Because the social pillar is not just about caring for people — it is about investing in a sustainable, motivating, and recognised corporate culture. The future belongs to human companies. And the journey starts here.

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Last update: 31 October 2025