Trends

For decades , companies — including health systems — have embraced Corporate Social Responsibility ( CSR ) programs and initiatives . Traditionally , this common corporate practice aims to ensure their organizations are responsible for their larger societal responsibilities by focusing on a few key areas that align with their business model .

But in recent years , the role companies are expected to play in society has evolved . Now , everyone from investors to clients to potential employees have higher expectations for what it means to be a responsible , good corporate citizen . These stakeholders expect companies to take the CSR agenda further , and they want to see metrics to back it up .

Corporations understand that meeting these elevated expectations is key to future business success . That ’ s why business leaders in healthcare and other sectors have turned to the Environmental , Social and Governance ( ESG ) model .

In this broader approach , environmental and social responsibility is fully integrated into corporate strategy and paired with a strong governance framework . The ESG agenda is then reported on with the same rigor companies bring to their financials , including quantifiable targets and measurable impact assessments .

Healthcare systems — long focused on saving lives and improving human health — have always been missiondriven organizations . However , the widespread adoption of ESG has required them to formalize these efforts by tracking and reporting on key metrics .

How ESG shapes healthcare purchasing decisions Leaders in the healthcare sector often focus their ESG strategy around addressing social determinants of health — or the factors that prevent people from having equal access to good health . Other focuses include climate change and its impact on human health and sustainable products and packaging . Health systems evaluate their business decisions to assess the impact on the health of their patients , staff and communities .

From their buying decisions to their overall strategy , health systems are fully integrating this approach . It ’ s now routine for them to request information

4 SUPPLY CHAIN OPTIMIZATION Issue 6 / 2023