The Social Pillar of ESG: Building People-First Businesses

The Social Pillar of ESG: Building People-First Businesses

Introduction

In today’s business environment, a company’s social character matters just as much as its financial health. Stakeholders from investors and consumers to employees and regulators are increasingly evaluating how organisations treat people, uphold rights, and foster inclusion. Yet many firms struggle to translate intent into action. A recent Deloitte survey found that only about 27% of Indian organisations feel confidently prepared to meet ESG requirements, and similarly, only 25% believe they’re ready when it comes to inclusion, diversity, and equity practices¹. This growing gap between expectations and preparedness highlights why the “Social” pillar must move beyond symbolic commitments to measurable action. Companies that embed diversity, equity, fair labour practices, and community engagement into their core strategies are not only building trust but also securing long-term resilience. As social responsibility becomes a defining factor in competitiveness, the question is no longer whether to act, but how effectively organisations can deliver meaningful change.

What Does the Social Aspect of ESG Cover?

The Social pillar (“S”) of ESG focuses on how organisations interact with people both inside and outside their operations. It covers a broad spectrum of issues, including:

• Labour Rights & Fair Practices – ensuring safe working conditions, fair wages, and upholding international human rights standards.
• Diversity, Equity, and Inclusion (DEI) – promoting gender balance, equal opportunities, and inclusive leadership across the organisation.
• Employee Health, Safety, and Well-being – addressing workplace safety, mental health, work–life balance, and employee engagement.
• Training & Workforce Development – investing in employee skill-building and long-term career growth.
• Community Engagement & Social Responsibility – contributing to local development through education, healthcare, and livelihood programmes.
• Customer Welfare & Data Privacy – delivering safe products, transparent communication, and safeguarding consumer data.

Together, these areas ensure that companies are not only profitable but also responsible employers, ethical producers, and socially accountable citizens.

• Case Studies of Social ESG Compliance

Following are some Indian companies which are leading the way in social sustainability by embedding inclusive practices into their operations:

1. Infosys: Empowering Women Professionals

Infosys launched the “Restart with Infosys” program to support women professionals returning to the workforce after a career break. In fiscal year 2024-25, the initiative resulted in the hiring of approximately 900 women in mid-management roles, a significant increase from 500 in the previous year. The program offers a structured learning platform and mentorship support to help women professionals re-enter the workforce with confidence. Currently, women make up 39% of Infosys’ workforce of over 320,000 employees, with a goal to raise this to 45% by 2030. Additionally, Infosys has been recognized as the winner of the 2024 UN Women’s “Women’s Empowerment Principles” (WEPs) India Award in the Gender-inclusive Workplace category².

2. Vedanta: Advancing Women Leadership in Mining and Community Development

Vedanta has made significant strides in promoting gender diversity within the mining industry. The company has initiated programs to deploy women in underground mining operations, a sector traditionally dominated by men. In FY25, Vedanta achieved its workplace gender diversity target for full-time employees seven years ahead of schedule³.

In addition to its corporate initiatives, Vedanta, through the Anil Agarwal Foundation, has launched the Nand Ghar project, a transformative initiative aimed at enhancing the lives of women and children in rural India. As of April 2025, over 8,045 Nand Ghars have been established across 15 states, providing modernized Anganwadi centers that offer early childhood education, healthcare, nutrition, and skill development for women. These centers serve as hubs for community development, empowering women through entrepreneurship training and facilitating access to micro-enterprise opportunities⁴.

Conclusion

The social dimension of ESG is no longer a peripheral concern it is central to how companies are perceived and how they perform in the long term. The examples of Infosys and Vedanta illustrate that meaningful action in areas such as gender diversity, workforce inclusion, community development, and women’s empowerment can yield tangible results for both people and business. By embedding social responsibility into their core strategies, companies are not just meeting regulatory or stakeholder expectations they are building trust, resilience, and a competitive edge.

Moving forward, organisations must shift from symbolic gestures to measurable, outcome-driven initiatives that benefit employees, communities, and consumers alike.