Companies need to increase their ESG (Environmental, Social, and Governance) score for a variety of reasons. ESG scores are used by investors, stakeholders, and customers to evaluate a company’s sustainability practices and its overall impact on society and the environment. Participating in the Work Opportunity Tax Credit (WOTC) program is a simple and effective way to increase your score. Here are some examples:
- Increased employment opportunities: The WOTC program provides tax incentives to employers who hire individuals from certain targeted groups, such as veterans, ex-felons, and individuals receiving government assistance. By participating in the WOTC program, companies can expand their pool of potential employees, providing job opportunities to individuals who may have had difficulty finding employment in the past.
- Reducing dependence on government assistance: By hiring individuals through the WOTC program, employers can help reduce the number of people who rely on government assistance programs. This can have a positive impact on the overall financial health of the community.
- Economic growth: By hiring individuals through the WOTC program, companies can stimulate economic growth in their communities. These new employees will have a steady income, which they can use to purchase goods and services, helping to boost local businesses.
- Enhanced corporate social responsibility: Leveraging the WOTC program can help companies demonstrate their commitment to social responsibility. By actively seeking out and hiring individuals from disadvantaged backgrounds, companies can show they are dedicated to making a positive impact in their communities.
- Positive community relations: By participating in the WOTC program and hiring individuals from targeted groups, companies can build positive relationships with community organizations and government agencies. This can lead to increased goodwill and a stronger reputation within the community.
Overall, participating in the WOTC program can help employers to demonstrate a commitment to social impact, governance, stakeholder engagement, and financial performance, all of which can contribute to an improved ESG score.
To learn more about WOTC or ESG, please reach out to a member of the Research Credits & Incentives team to get more info. Alternatively, please feel free to schedule a complimentary one-on-one call with one of our experts.
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