ESG – Social Framework (One Page Summary for UK SMEs)

1. What the “S” in ESG Means The Social pillar of ESG is about how a company impacts people: employees, customers, suppliers, and the wider community. It measures fairness, safety, wellbeing, and responsible behaviour throughout the business.
2. Core Social Responsibilities Employees • Fair pay and good working conditions • Health, safety, and wellbeing • Training, development, and upskilling • Diversity, equality, and inclusion • Workers’ rights and fair treatment • Regular employee feedback and retention focus Customers • Safe, high-quality products/services • Data protection and GDPR compliance • Ethical and transparent marketing • Fast, fair complaint handling Communities • Positive local economic contribution • Volunteering and community engagement • Minimising noise, traffic, and environmental impacts • Supporting local initiatives Supply Chain & Contractors • Ethical sourcing and labour standards • Modern slavery prevention • Human rights protections • Supplier Code of Conduct and fair procurement • Supplier audits and compliance checks
3. Monitoring the Social Pillar A. Key Social KPIs (Track Quarterly) Employees • Staff turnover rate • Absence/sickness rates • Health and safety incidents (RIDDOR, near misses) • Training hours per employee • Diversity representation • Employee satisfaction score Customers • NPS (Net Promoter Score) or satisfaction score • Complaints and resolution time • Product safety issues • Data breaches Supply Chain • % suppliers meeting ESG standards • Supplier audits completed • Modern slavery risk assessments • Lost time incidents (LTI) in the supply chain Community • Local hiring percentage • Volunteering hours or community contributions
4. Policies and Governance Policies to Maintain • Health & Safety • Equality, Diversity & Inclusion • GDPR / Data Protection • Modern Slavery • Supplier Code of Conduct • Community engagement Management Responsibilities • Appoint an ESG/Social Lead (HR or Director) • Review Social KPIs quarterly • Publish a short annual ESG update for stakeholders
5. Data, Risks, and Reporting Data Collection • Monthly H&S; data • Quarterly HR + KPI dashboard • Annual employee survey • Annual supplier audits • Continuous customer feedback monitoring Risk Assessments • Modern slavery risks • Workplace safety • Data privacy vulnerabilities • Community impact for new projects Annual Improvements • Update training plans • Refresh risk assessments • Complete a supplier ethics review • Select 1–2 community projects to support Simple Summary The “S” in ESG = People. A company monitors it by setting clear KPIs, maintaining strong policies, collecting data regularly, assessing risks, and reporting progress.