Blog
By Whitney Buchmann, MBA
Associate Consultant, Factum Global
In the world of business, there’s an underlying truth that often goes unspoken: people are at the heart of sustainability. They are the why and the how. While the E and G of ESG (Environmental, Social, and Governance) principles are undeniably important, it’s the ‘S’ – social sustainability – that truly underpins an organization’s viability and long-term success.
Why should companies care about the S in ESG? Most business leaders agree that their most valuable asset is their people. Simply put, their entire business model depends on social sustainability. Suppliers, employees, customers, investors, and society are all people whose wellbeing influences how they engage with the organizational ecosystem.
What can businesses do? Prioritizing social sustainability means seeking to understand and managing the impacts of organizational strategies, processes, and activities on its stakeholders. Just as businesses can set goals to have a net positive impact on carbon emissions, they can aim to have a net positive social impact. This requires engaging diverse stakeholders and co-creating what success looks like.
Here are just a few ideas that I have learned from the coffee industry.
1. Rituales de Café 
2. Starbucks coffee 
3. Costal Coffee 
1. Rituales café
At Rituales, located in the heart of coffee country (Medellin, Colombia), they have a plethora of options for purchasing coffee beans. Yet, they identified a local group of farmers located in the outskirts of Medellin to develop a long-term partnership with. Choosing to only source their beans from this co-op nurtures a trusting relationship to make product improvements and innovations together while driving the growth of this local community. Local procurement isn’t always possible in all aspects of business, but practicing shared prosperity with local businesses will create a virtuous cycle for employees, customers, and their families.
2. Starbucks coffee
In the coffee industry, harvest season is brief and changes depending on the region. Therefore, coffee pickers often migrate from region to region, sometimes crossing borders, to have consistent work. When I visited Hacienda Alsacia, they explained that one of the needs they heard from their migrant workers was the lack of access to healthcare and housing because of their migratory status. Recognizing the value of healthy, consistent staff, Starbucks built housing and offers healthcare services on site at their coffee farm in Costa Rica. Taking the time to understand the challenges that your stakeholders face, and partnering to solve them, shows care for your stakeholders which builds trust and loyalty. Not to mention the net positive impact!
3. Costal coffee
One man’s trash is another’s treasure. Coffee production leaves behind shells that can be used as mulch, sacks that can be turned into useful totes, and grounds that can be turned into beauty products. Costal is one example of a company that collects used coffee sacks from farmers and facilities in order to create products like backpacks and tote bags. Their entire business model depends on the waste materials of the coffee industry. By forming strategic partnerships, rather than being distracted by perceived competition, you can implement circular economies that sustain long-term growth.
In summary, businesses can:
- Procure locally to create virtuous cycles in the communities where you work.
- Seek to understand the challenges facing your stakeholders and partner to solve them.
- Form strategic partnerships to implement circular economies that sustain long-term growth.
Are you ready to prioritize social sustainability? Today, more than ever, proactive adoption of sustainable business strategies is vital to your long-term global success. That’s why I am pleased to join Factum Global as an Associate Consultant. I bring more than 13 years of social sustainability expertise and a record of facilitating change initiatives within a variety of organizations using “human-centered design.” I would love to speak with you to see how we can ensure that your growth is mutually beneficial to all stakeholders.
Whitney Buchmannis and Associate Consultant with Factum Global and the founder of Illustra Impact, a consulting practice that partners with leaders to make social sustainability a reality:
