Why the Social Side of ESG Matters So Much Here? 

In South Africa, ESG (Environmental, Social, and Governance) isn’t just about following rules it’s about tackling our biggest challenges such as unemployment, inequality, and the legacy of exclusion. The “Social” part of ESG is particularly important because it helps build stronger businesses while creating opportunities for everyone. Both corporates and small businesses (MSMEs – Micro, Small, and Medium Enterprises) need to make social impact a core part of how they operate. This is where BBBEE (Broad-Based Black Economic Empowerment) becomes a powerful tool to create economic opportunities, support black-owned businesses, and reduce inequality. 

 

Why Companies Can’t Ignore Social Impact 

Small businesses and corporates are realising that doing good is also good for business. When small businesses treat workers fairly, develop skills, and engage with their communities, they build trust and attract investment from socially responsible investors. 

For corporates following BBBEE principles through inclusive hiring and community development isn’t just about compliance it builds credibility. But too many businesses are still just ticking boxes instead of creating real change. 

 

To make a real difference, businesses need to invest in: 

• Building capacity in black-owned businesses 

• Helping them access markets 

• Providing mentorship and skills training 

• Offering financial support 

This approach creates stronger supply chains, improves competitiveness, and drives innovation. 

 

Going Beyond Just Meeting Requirements 

Traditional Enterprise and Supplier Development (ESD) programmes often ignore the real structural problems and don’t properly involve communities. True transformation in ESD means: 

• Creating partnerships between big companies and local small businesses 

• Building shared value through programmes designed together 

• Creating long-term economic impact 

These efforts help develop the country while making businesses more sustainable. 

 

The Important Role of Implementation Partners 

Implementation partners are the bridge between corporate ESG strategies and what happens in communities. They: 

• Design inclusive programmes that can grow and are based on what communities need 

• Make sure initiatives align with business goals 

• Provide data and monitoring to continuously improve 

However, their success depends on their relationships with corporate clients. Supportive partnerships lead to innovation and long-term impact, while those focused only on compliance tend to produce shallow results. 

 

Including Small Businesses in Programme Design 

The best ESD programmes treat small businesses as active partners, not just recipients of help. Engaging small businesses through: 

• Focus groups 

• Surveys and interviews 

• Community workshops 

This builds trust and ensures programmes are relevant and responsive. This collaborative approach leads to better participation, stronger commitment, and lasting impact. 

Zevoli Growth Partners plating a role Social into ESG 

Zevoli Growth Partners is a good example of putting the “S” into ESG. They implemented programmes focusing on skills development and mentorship for local small businesses. The results included: 

• Better financial management 

• ISO certification 

• Securing new contracts 

 

By treating small businesses as partners rather than just recipients, Zevoli Growth Partners helped change power dynamics, created deeper engagement, and strengthened supply chains. This shows how inclusive practices build trust and mutual growth. 

 

Measuring Real Impact, Not Just Activities 

To truly measure the social impact of ESG initiatives, businesses must focus on results not just what they did. Key indicators include: 

• Small business revenue and job growth 

• Sustainable market access 

• Supply chain integration 

Tools like surveys and interviews help centre the voices of those affected. Breaking down data by gender, location, and other factors ensures inclusive development. Long-term tracking assesses whether interventions work, turning ESG from a reporting exercise into a tool for learning and accountability. 

 

Recommendations for Different Players 

For Corporates 

• Move from just complying to co-creating with communities 

• Provide real procurement opportunities and funding 

• Build long-term partnerships with small businesses and implementers 

For MSMEs: 

• Actively participate in ESG partnerships 

• Develop skills that match market and supply chain needs 

• Embrace sustainable and responsible business practices 

For Implementation Partners: 

• Use human-centred design approaches 

• Build in community feedback 

• Focus on both social and business outcomes 

Conclusion: Creating Lasting Change 

To achieve inclusive economic growth in South Africa, activating the “S” in ESG isn’t optional, it’s essential. When small businesses are recognised as equal partners, not just beneficiaries, it creates innovation, trust, and long-term economic value. A people- and partnership-centred approach to ESG ensures that businesses don’t just comply with requirements they contribute meaningfully to national development, resilient supply chains, and community upliftment.