Measuring Corporate Impact and Health

What is the most impactful social practice for corporates?

The answer might be "economic engagement", according to Christos Makridis and Bill Fotsch in their article ESG investors have good intentions, but there's a better way to measure corporate impact and health.

This concept aims to gather metrics that demonstrate a company can do good internally and in society. They can be sorted into 5 pillars:

• Customer service is paramount to build robust, valuable, and profitable customer relationship that can resist crises in the long term.
• Shared economic understanding with employees and customers provides them with a common set of values that fosters collaboration and agility to respond to customers' needs.
• Transparency enables all stakeholders to understand the decisions and results of the companies, learn from them and from one another, and to adopt proper behaviour as in the public space.
• Shared compensation to provide everyone in the company with incentives to create value as partners of a company they have a stake in.
• Employee participation at every level of the company to involve the employees in company management and performance in whatever way they can and wish.

These practices characterise companies that aim to serve their customers profitably while treating them, and all their other stakeholders, as partners with which to build and scale their activities. The authors of the article have worked with the Harvard Business School to design a survey gathering 15 metrics to measure economic engagement and assess the link between this concept and economic growth.These practices characterise companies that aim to serve their customers profitably while treating them, and all their other stakeholders, as partners with which to build and scale their activities. The authors of the article have worked with the Harvard Business School to design a survey gathering 15 metrics to measure economic engagement and assess the link between this concept and economic growth.