Mental Health and Wellbeing Washing

Yesterday was World Mental Health Day, a day that shines a spotlight on global mental well-being, both in and out of the workplace. Mental health, once considered a personal issue, is now a growing focus in responsible investing, due to its significant impact on employee productivity and overall corporate performance. However, it’s important that investment managers are aware of the pitfalls of mental health awareness – particularly with ‘Wellbeing Washing.’

What is Wellbeing Washing?

Much like Greenwashing or Rainbow-washing, Wellbeing washing refers to the superficial attempt by certain businesses to conform to societal expectations and trends surrounding mental health. Much like environmentally friendly practices, the growing expectation and desire for mental health awareness plagues the media. Now, instead of being a taboo subject, there are numerous days and weeks dedicated to wellbeing, including; Stress Awareness Month for April, Mental Health Awareness Week in May, Time to Talk Day on the first Thursday of February, Global Mental Health Day for Children on the 7th of May, and World Suicide Prevention Day on the 10th of September.

The awareness of Mental Health, and the need to address it as an illness, has been heavily advocated in recent years, particularly in the workplace. According to HSE (Health and Safety Executive), alongside musculoskeletal disorders, stress, depression, or anxiety accounted for the majority of days lost due to work-related ill health in 2022/2023:

On average, each person suffering took around 15.8 days off work. This varies as follows: 6.6 days for Injuries, 17.8 days for Ill health cases, 19.6 days for Stress, depression or anxiety, and 13.9 days for Musculoskeletal disorders.

With people taking an average 19.6 days off in a year for stress, depression, or anxiety, it is clear that mental health directly impacts productivity, and in turn, corporate performance. As such, these awareness days are a necessity for employees and employers alike.

But how do businesses address the issue effectively? And how do they avoid wellbeing washing?

Supporting Mental Health: Businesses

There are a number of ways in which businesses can actively support mental health – the optimum word being ‘actively’. To avoid wellbeing washing, companies should be openly promoting their stance on mental wellbeing, ensuring staff are made aware of the issue, and policies are in place to support staff. These measures can include:

Long-term strategies: Regularly offer comprehensive mental health resources, such as Employee Assistance Programmes (EAPs), mental health training for managers, and 24/7 counselling services.

Promote a supportive culture: Ensure leadership is committed to mental well-being and foster open conversations about mental health – being sure to dismantle the stigma that surrounds the topic.

Take action: Talk and promote mental health and positive wellbeing all year round – not just on awareness days. Keep the conversation going!

Track and measure impact: Regularly assess mental health initiatives to ensure they’re effective, and adapt them on employee feedback.

Despite the media being filled with mental health awareness, throughout the year, many companies are still not treating mental health as an important issue. According to CCLA, ‘Only five of 119 companies assessed in this year’s CCLA’s Corporate Mental Health Benchmark Global 100+ were placed in the top two performance tiers,’ with only 12 out of 119 companies have improved their performance since last year.

But why is this? Why aren’t businesses pushing for better mental health support for employees – especially as it benefits them in the long run. Better mental health policies and support will ultimately lessen sick days and maximise productivity. Thus, Mental Health should be a priority for businesses, all year round.

Mental Health as a Human Right:

Mental health is starting to be considered as more than just a ‘workplace’ issue, instead it’s starting to be recognised as a fundamental human rights concern. According to the WHO, mental health is intrinsically linked to human dignity and a right to health. In fact, the WHO estimates that mental disorders affect 15% of working-age adults worldwide. This makes mental health a critical issue for companies, not just in how they manage their own employees, but also across their broader supply chains.

From an investment perspective, failing to address mental health adequately in global supply chains can create vulnerabilities. Whether in direct operations or among its suppliers, a company with poor mental health practices risks lower productivity, higher absences, and increased turnover. Thus, investing in companies that value and advocate for positive mental health, will help ensure stronger, long-lasting and stable portfolios.

So, let’s not forget about mental health by next week. Let’s encourage businesses to take action, and face mental health face on – both in and out of the workplace. And remember to keep the conversation open, not only to help drive improvement for next year’s CCLA’s Corporate Mental Health Benchmark Global 100+ , but also for everyone that struggles with their mental health. A supportive environment is a productive environment.