Responsibility | Voices partners. But, depending on the brand, the auditor and the standards used, our factory could score very differently in each audit, even if they were conducted in the same week. So, while it is a very positive step that we are discussing ESG and working toward it, there is still so much work to be done. To make it easier to understand, I look at ESG like a three-legged stool: One leg is about people, one is about the planet, and one is about profits. All three legs need to be appropriately balanced for us to succeed. The three Ps are not negotiable. They are all inextricably linked and must be adequately nourished and balanced within a business to be stable. Focusing too much on profit at the expense of the planet and people is not sustainable in the long run. We must balance these three pillars for our businesses to thrive. While it is natural for business leaders to want to focus on the bottom line first above all else, I promise you that taking care of the other two pillars of people and the planet will help your bottom line in the long run. It’s not just from a consumer perspective that we need to examine ESG, however. As mergers and acquisitions continue to be strong in our industry, the social factors in ESG are likely to become even more critical to investors and stakeholders. These are key to retaining talented employees, and they have a direct and measurable impact on a business’s bottom line. End-buyer stakeholders will look for social metrics to include in nonfinancial disclosures to help better measure and compare distributor performances. It has been shown over the past couple of years that companies with strong social metrics who give ESG the attention it deserves are in far better positions to weather difficult times. HALO, ranked No. 2 on the PPAI 100 list of leading industry distributors, has shown its commitment on these topics, appointing PPAI’s immediate past chair Dawn Olds, MAS, to senior vice president of industry relations, meanwhile rebounding from the pandemic as well as any company. In January, HALO announced that it had crossed the $1 billion revenue mark for the first time in 2022. People, planet and profit can indeed coincide. If this feels daunting, it is essential to acknowledge that we do not have all the Consumer Preferences 85% have a more positive image of a product or company when it supports a cause they care about. 92% want to buy a product that supports a cause. 72% believe companies should have a legal responsibility to people and the planet. Source: Aflac answers, and it is OK not to be perfect. ESG is a journey, not a destination. It requires community support to succeed. Lean on your peers, networks and memberships in organizations that promote supplier diversity to help you. ESG is a journey of learning and growth that will ultimately benefit us all, so let’s start this journey together. Cheng is the president of Redwood Classics Apparel and an industry advocate for corporate social responsibility. She earned Ascend Canada’s Woman of Distinction Award for 2022. I look at ESG like a three-legged stool: One leg is about people, one is about the planet, and one is about profits. All three legs need to be appropriately balanced for us to succeed. PPAI • OCTOBER 2023 • 35
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