Switching to an online-focused business strategy might come in handy if you’re in the beauty industry. Environmental, social, and governance (ESG) is a 40 trillion-dollar industry today, and according to Bloomberg, global ESG assets can exceed $53 trillion by 2025. In a broad sense, it means a sustainable development of commercial activities based on a responsible attitude to the environment, high social responsibility, and high quality of corporate governance. To achieve sustainable development, companies need to balance all the ESG principles, from the carbon dioxide footprint to labour practices like enhancing diversity and understanding the growing demand for sustainability and quality of employment from consumers.
More than 36% of adults report experiencing workplace discrimination in the UK, mainly related to age and gender. Online platforms give a more comprehensive range of opportunities. For instance, independent beauticians and hairdressers have equal rights on the online platform. They can use the digital system and get new clients without discrimination related to age, gender, or race. Diversity through digital platforms applies to any industry, including software development, design, etc. Remote working presents opportunities for employers to create a more welcoming environment for employees from certain groups, for instance, people with disabilities and new or single parents who struggled to return to work after having their baby.
Online platforms have a sustainable approach and environmental benefits. For example, we give a higher rating to specialists working with natural cosmetics and cruelty-free brands and beauticians who recycle skincare products and cosmetic packaging. Sustainable waste disposal and recycling approaches are especially important for manicure and hairdressing services. In addition, Digital platforms have positive environmental characteristics such as reduced power consumption and less paper usage.
1.7M working people in the UK suffer from work-related illnesses, including mental and physical disorders. An online business can minimise the risks of work-related accidents and long-term health impacts. We develop health protection policies at the workplace, from using respirators to protect workers from the harmful effect of chemicals to improving ventilation in the working area and choosing eco-friendly materials.
People spend more time at work than they do at home or elsewhere; for this reason, a sustainable office environment makes it less stressful and more enjoyable for workers. A sustainable workplace helps balance the planet, people, and profit to produce success and viability in the long term. For digital businesses, coworking spaces often replace traditional offices. We are launching shared working spaces with a sustainable approach. Employees can use eco-friendly vegan beauty products and have a harmonious workplace. Well-being positively impacts companies through increased employee engagement and performance. According to Gallup, higher levels of engagement affect business outcomes such as 21% higher profitability.
Finally, the payment processes through digital platforms are more transparent and straightforward. Employees get the payment for their work immediately without delays and possible fines from the employer. For example, beauty salons can apply fines if the employee can not meet the corporate schedule; however, self-employed beauty professionals can set up their regimen and get paid immediately after completing their work.
Companies with more sustainable impact grow faster than brands with less sustainable propositions. Experts believe the rise of the ESG-agenda is related to the interests of millennials. They became a paying audience with values different from the previous generations. For them, business and investments are not only about income but also about taking care of the environment and society. Moreover, millennials demand purposeful work; consequently, online companies with sustainable policies are becoming more and more attractive for employees.
About the Author
Alex Tomchenko is the CEO of Glambook, the number one app for independent beauty experts and clients. It allows customers to find the best deal in their city by filtering price, service reviews, and location. In addition, the company partnered with over 10k independent beauty professionals from more than 38 countries. As a result, beauticians and hairdressers can quickly get new clients without paying high commissions to salons.