It is incumbent for companies to recognize the pivotal role mental health initiatives play in fortifying the 'S' of ESG throughout the year and not limit it to World Mental Health Day
In recent years, one of the main areas of overall well-being that has been in focus is mental health. The World Health Organization noted that when individuals are mentally healthy, they are able to realize their own abilities, cope with the normal stresses of life, work productively, and make positive contributions to their community. It is only natural that mental wellness of employees has become an important discussion at the C-suite level within companies.
The corporate world has witnessed a paradigm shift in its approach towards ESG. Beyond traditional metrics of success, Environmental, Social, and Governance (ESG) criteria have become integral to evaluating a company’s long-term viability. Among these, ‘S’ – the Social dimension – encompasses a broad spectrum of issues including employee well-being and community engagement. It is crucial to recognize the profound impact mental health initiatives have and how this is no longer an ignored aspect of the ‘S’ in ESG. Mental Health may well turn out to be the most important variable in determining the long-term productivity, competitiveness and viability of a business, irrespective of its size.
As per several studies, 77% of workers struggle with workplace-related stress and symptoms. And while 33% of all respondents continued to work, despite poor mental health, 29% took some time off and an alarming 20% simply resigned to better manage their mental health. So why is addressing employee mental health a game changer? Because for the states mentioned, the end result is the loss of a staggering 12 billion working days yearly, and this is calculated just considering depression and anxiety, not other issues.
A company’s commitment to mental health initiatives both in terms of taking actions to prevent mental health issues, and once identified, creating a compassionate environment so that employees get the support they need. It is not merely a benevolent gesture; it is an investment in the longevity and prosperity of the business. Research consistently demonstrates that prioritizing employee mental health leads to improved productivity, greater employee retention, and enhanced overall company performance. Moreover, it fosters a positive work environment that attracts and retains top talent, further contributing to the ‘S’ of ESG. In essence, a focus on mental health is not only ethically sound but also strategically astute.
It is imperative that the leadership within organizations understand and appreciate the benefits of getting it right. Companies that consider this as another initiative that they have to comply with will almost certainly fail to derive the full benefit as against companies that truly embody mental health interventions in organizational values and culture.
India isn’t immune to this global phenomenon with 59% of employees in India experiencing depression. But India Inc. has one advantage the others don’t. It is an emerging economy, being built from the ground up. So, it can assimilate the ESG and mental health perspective in a more flexible and intrinsic manner than those from more established economies can…and it is showing.
Several studies have revealed that eight out of ten companies in India have augmented their expenditure on employee well-being. This demonstrates a significant increase in the prioritization of employee welfare. Moreover, a remarkable 82% of Indian companies acknowledge the substantial impact of mental health on business outcomes.
India Inc., with its diverse corporate landscape, is emerging as a global steward in prioritizing mental health within the ESG framework. Companies, big and small, are increasingly recognizing the symbiotic relationship between employee well-being and sustainable growth. Initiatives such as providing mental health resources, access to counseling services, and fostering a stigma-free workplace culture are becoming commonplace.
It is incumbent for companies to recognize the pivotal role mental health initiatives play in fortifying the ‘S’ of ESG throughout the year and not limit it to World Mental Health Day. India Inc.’s strides in this domain are commendable and serve as an inspiration for companies worldwide. By understanding the tangible benefits of prioritizing mental health, businesses can not only enhance their ESG compliance but also pave the way for a more sustainable and prosperous future. It’s time to acknowledge that a thriving business is intrinsically linked to the well-being of its workforce.
(The author of this article is Anu Chaudhary – Partner, Global Head of ESG Consulting)
