Healthcare Insight

Culture, ESG, and the strategic power of the CPO 

May 5th 2025

As investors sharpen their focus on ESG, and boards face growing pressure to build inclusive, resilient businesses, the Chief People Officer is becoming a key architect of both culture and credibility. 

For healthcare and social care businesses in particular where services are inherently impact-driven – the expectation is rising. Private equity buyers and lenders are demanding robust reporting across Environmental, Social and Governance pillars before making a move. And that’s where the modern CPO steps in. 

The ‘Social’ and ‘Governance’ pillars are especially tied to HR. CPOs are now expected to show not only how people are treated but how that treatment is measured, benchmarked, and improved. Exit interviews, colleague NPS scores, and leadership accountability structures are no longer ‘nice to have’, they are deal-critical. 

And there’s another benefit too: board-level diversity. In a sector where over 80% of CPOs are women, bringing HR leaders into the C-suite helps close gender gaps and create executive teams that better reflect their workforces and the communities they serve. 

In a sector where over 80% of CPOs are women, bringing HR leaders into the C-suite helps close gender gaps.

CPOs are also using their influence to shape organisational culture – lobbying for better collaboration between clinicians and frontline staff, and rolling out hub-and-spoke models in multi-site groups to share best practices and raise overall standards. 

Culture isn’t just internal anymore – it’s part of how a company earns trust from stakeholders, regulators, and future acquirers. And in today’s tight market, culture and ESG might just be your biggest differentiators. 

 

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