RIDED HORSE - THE ORIGIN AND MEANING OF EXPRESSION

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This gaucho saying is reasonably well known: A saddled horse does not pass twice in front of you.

 

The implicit message: If the saddled horse passes in front of you, mount it and go on the journey. If you don't, someone else will.

 

Great opportunities do not always appear. If one comes up to you, grab it or you will regret not having done it.

 

THE ESG MOVEMENT

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The acronym, in English, includes the E for Environmental (Environmental), the S for Social and the G for Governance (Governance). Together, the letters identify the movement destined, in short, to ensure that companies explicitly assume the commitment to serve society. This movement has acquired more and more visibility, in Brazil and in the world.

 

IN THE SAME DIRECTION, CAPITALISM FOR STAKEHOLDERS

 

In a classic article published in 1970, Milton Friedman, Nobel Prize in Economics in 1976, defended the thesis that “corporate social responsibility is to increase profits”, a thought that has packed the business agenda, mainly in the USA, for decades. In essence, capitalism for shareholders.

 

In August 2019, Business Roundtable, a business organization that brings together approximately 200 leading companies in the USA, buried this pro-shareholder vision and embraced the commitment to the search for results that meet the aspirations of all Stakeholders, that is, all parties involved in the business ecosystem: employees, customers, partners, the community and shareholders. This is called Capitalism for Stakeholders.

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ESG, CAPITALISM FOR STAKEHOLDERS: SPECIES OF THE GENDER “THE COMPANY MUST SERVE SOCIETY”

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The new political and social context in the Western world is characterized by extremely relevant changes. Examples:

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• The search for new generations for a greater sense of work;

• The appreciation of Purpose as a driver of the destiny of an individual or a company;

• Sustainability as an irreversible component of business management;

• The cry of citizens, consumers and investors for ethics and transparency in public or private management;

• The growing feeling that the current practices of capitalism are widening social and economic inequalities.

 

The principles adopted by the ESG and Capitalism for Stakeholders movements represent historical advances that seek to respond to societal concerns. However, in much of the western world, where they have a more solid prospect of coming to fruition, there is a long way to go before they are incorporated into the business world. But there are already relevant adhesions, including in Brazil, from companies recognized and admired for having chosen this journey.

 

Both movements were already strengthening in the pre-pandemic world and the global health crisis only opened up the need for companies to assume a relevant role in addressing issues that affect society as a whole.

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RHs OF BRAZIL: BELIEVE, THAT RILED HORSE IS PASSING THROUGH YOUR WINDOW

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Both ESG and Stakeholder Capitalism will only become reality if they are part of the company's DNA. Press releases or elegant phrases in reports on environmental or social successes will not stand the test of time until the soul of the company has incorporated the principles of these movements.

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If the conception that the company should serve society has to be in the DNA, then it is an element of the internal culture, it is a pillar of the Organizational Identity, which expresses the company's convictions about purpose, values ​​and vision. This subject is part of the HR field.

 

In fact, this is the most important work in the HR area: leading the internal process for the construction, communication and institutionalization of the Organizational Identity.

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A JOURNEY OF RISK FOR HR LEADERS

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This change is profound and the arguments to the contrary are the usual suspects: Nobody is going in that direction, why should we go? Our results have been so good, why mess with a team that is winning? Isn't that just a fad?

 

The context requires a lot of technical competence and political skill from HR to articulate the argument for change and convince the organization that this is the way forward. It is not simply changing an internal People Management process. It is changing the nature of the company. The context demands a stance of statesman from HR, it requires courage .

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Let us remember this phrase, attributed to Winston Churchill, one of the greatest statesmen in history: “Courage is the statesman's first virtue; without it, all other virtues disappear in the hour of danger. ”

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THE ROLE OF HR IN PANDEMIA… AND IN HISTORY

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Companies are no longer just economic and social institutions. Today, they are also political institutions, which implies assuming the right and the duty to get involved in issues that affect society.

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The ESG and Capitalism movements for Stakeholders are irreversible and will change companies, societies, countries, the world.

 

Due to our political, economic, social and cultural particularities, they may take time to solidify in Brazil. But we are not an island.

 

The remarkable work done by HR in these sad pandemic times has been deservedly praised. These moments will be recorded as an example in which the HR reaction was historic .

 

Riding the saddled horse called ESG is the opportunity for HR to make history.

 

RHs do Brasil: Get on that horse before an adventurer throws a hand.

 

Salvador Evangelista