For global telecoms service providers focusing on multinational corporations (MNCs) and large enterprises, the oversight of social and governance (S&G) reporting poses significant risks. Neglecting these crucial aspects may jeopardize their standing in an increasingly ESG-focused business landscape. Recognizing the impact of S&G factors is imperative for telcos navigating the complexities of corporate partnerships and global enterprises, said GlobalData, a leading data and analytics company.
GlobalData’s analysis of 11 global telecoms service providers finds that they are improving performance in terms of gender, minority, LGBTQ+, and disability balance, with most working from historic baselines and setting targets for future ratios.
These metrics are becoming ever more widely adopted and assessed by independent third parties. No longer a “nice to have,” they can make a positive commercial contribution – or can cause significant damage if not adhered to or found to be false.
Robert Pritchard, Principal Enterprise Technology and Services Analyst at GlobalData, comments: “It is widely recognized that a diverse workforce is better at decision-making, problem solving, and innovating by avoiding groupthink and rearview mirror planning. Managed well, S&G improves engagement with talent, customers, suppliers, communities, and governments.”
Governance issues such as modern slavery, tax compliance, and ethical operating practices should always be a given – if not, failure can result in loss of business or the demise of the service provider, with WorldCom perhaps the most obvious historical example in telecoms.
Pritchard adds: “Service providers are also investing in employee training, contributing to the communities in which they work through technology initiatives to breach the digital divide, volunteering schemes that also work as team building exercises, as well as many broader activities to ‘give something back.’ Standards of support for employee health and wellbeing have also progressed substantially, again helping productivity and talent retention.
“S&G has evolved from the fairly haphazard world of diversity, equity, and inclusion (DE&I) and can be seen as the poor cousin of Environmental issues in ESG, but together they all point the way forward – and tech companies as a sector can be proud to be leaders in this field.”