Axeleo Capital’s Social & Good Governance Playbook: Fueling Performance and Resilience in Startups

Article Date
November 7, 2024
Category
Article

Navigating the early stages of a startup's journey requires more than just a focus on product and market fit; robust social and good governance practices are key drivers of long-term performance and a solid foundation for scaling effectively. That’s why we’re excited to launch our Social & Good Governance Playbook—a practical resource to help startups embed social responsibility and governance practices into their growth strategies.

Why Social & Governance Matters

Strong social and governance practices are not only ethical choices but powerful strategic advantages. These practices are proven to increase trust with customers, partners, and employees, enhance brand reputation, and attract top talent:

  • Brand Trust: 88% of consumers say they are more loyal to companies that support social and environmental issues, and 75% are likely to take action against brands that are perceived as acting irresponsibly (Forbes, 2023).
  • Talent Attraction: 79% of millennials consider a company’s social and environmental commitments when deciding where to work, with 64% saying they won’t take a job if their employer doesn’t have strong corporate social responsibility (CSR) practices (Deloitte Millennial Survey, 2023).
  • Long-Term Profitability: Companies with strong governance and social practices outperform their peers by as much as 25% in profitability, as demonstrated in a recent McKinsey study. They also exhibit 40% fewer risks associated with regulatory issues and workforce turnover.

Our Social & Governance Guide provides startups with a structured approach and practical tips to sustainable growth across six key areas: culture, governance, compensation policy, gender parity, employee well-being and empowerment. Each section includes concrete steps and resources, helping companies of all sizes build sustainable foundations that drive growth at every stage.

6 Key Priorities

  1. Culture: Establishing a values-driven culture is essential for long-term success. We provide tools to help startups define and maintain a culture aligned with their mission.
  2. Governance: Clear governance practices promote transparency and accountability. This guide covers essentials like board structure (with independent members) and decision-making processes.
  3. Compensation Policy: Fair, transparent compensation is key to retaining talent. We show startups how to align compensation with company goals.
  4. Gender Parity: Diversity is crucial. Our guide includes metrics and hiring strategies to help companies achieve balanced representation.
  5. Employee Well-being & safety : A safe workplace (both physical and psychological) boosts satisfaction and productivity. Prioritizing mental health, work-life balance, and support fosters a productive, engaged workforce.
  6. Empowerment: Mentorship and training programs are essential for personal and professional growth. This section offers methods to empower founders and employees fully.

Each priority includes real-life examples and actionable tools that help startups take effective steps in each area.

The guide highlights role model startups like 365Talents (parental benefits, team-building), Trustpair (values implementation), and Joko (flexible work policies). These companies illustrate how strong social and governance strategies benefit both teams and business growth.

Our Playbook also includes a selection of trusted partners, like Have You Met Simone (recruitment agency committed to gender equality), Moka.care (mental health support), and Solar Management (support for formalizing corporate values / mission). Each partner offers specialized resources to help startups embed social responsibility and governance into their core practices.

At Axeleo Capital, we’re dedicated to helping startups grow responsibly and scale efficiently. With this Playbook, we aim to inspire companies to build inclusive, safe, and sustainable work environments that benefit both their teams and society.

Download the Playbook and give us feedbacks.