What does it mean to address and engage “people” – the social capital side of sustainability? Your employees, your customers, and the community within which your company operates all impact its business decisions.

“Sustainability” is often perceived as solely focused on “green” initiatives. However, “…sustainability is the economic, environmental, and social impact on the communities within which we work. It can be defined as a business’s ability to endure and be mindful of the greater impact of activities on the world in which it operates.”¹ Also known as comprising the Triple Bottom Line, sustainability encompasses people (social capital), planet (natural capital), and profit (financial capital).

In construction, where low price is often the deciding factor in contractor selection, why should the social obligations of a public owner, the charitable inclinations of a private developer, or the ethical imperatives of a prospective client be considered in the bid? Can the local economic climate or cultural norms influence how a project is planned or executed? Do we deliberately plan and execute employee development initiatives as thoroughly as our project proposals? Are our employees – i.e., the impact they have on our company culture, our client relationships, and our long-term viability – not at least as valuable as the most recent bid?

All of these factors – the community of employees and prospective employees, the economics of both your client and your company, and the resources made available through our environment – mesh almost imperceptibly when drafting a project proposal.

It’s time for staff, managers, and company leaders to widen their perspectives and deliberately incorporate “people” – the social capital side of the business – into everything from business development and budgeting to project closeout and shuttering a field office.

Social Capital in Construction

Within your own company, there are likely initiatives targeting employee training, safety, and wellbeing, as well as sponsored activities that support local community development or annual holiday charity drives. These are common attempts to enhance social value. However, only by establishing a dynamic, integrated, and reasoned social value agenda will companies maximize the impact of these efforts.

As Bryan Esterly, Research Associate at Sustainability Accounting Standards Board (SASB), says, addressing “people” in construction should consider: “... the impact of project development on surrounding communities, … the structural integrity and safety of projects, … and allocating internal resources (e.g., hiring, training, development, etc.) based on long-term trends around societal needs.”