Author: Philip Webb

Growing pressures from consumers, supply chains, governments, and action groups, has meant that businesses can no longer sidestep or ignore the calls for reform, and to integrate their operations with the social values that drive individuals’ behaviours, whole economies, and all communities.

The old expression “People buy from people” is as true today as ever before, and no amount of technology can replace this statement.

Consumers and supply chains, are now demanding action from companies, to join with the global agenda, to reform working practices, disconnect every action from that of pure profit, and to show leadership in values, to determine success.

Let’s break that down:

Firstly, the consumer, whose voice is heard by the spend patterns they establish. Following and buying from those businesses, who can demonstrate and reliably report on ESG principles, connecting with their stakeholders, community, and planet

Around 80% of Millennial generations, that is everyone of 40 years old and younger, are aligned as never before, with the issues of sustainability; relating to environment, waste, wildlife, energy, child labour, product origin, carbon footprint, to that of our communities, charities, not-for-profits, to rebalance our society to be inclusive, embracing, and values driven

Companies that do not show leadership and show their espouse values, will be shunned in the years ahead, in favour of those that do.

Secondly, the rapidly shifting of requirement within SUPPLY chains. As with the GDPR regulations, where customers insisted on demonstrable compliance to remain as a supplier, so will this manifest in due course with Social Impact reporting, and values

Already we have seen the UK Social Value Act being amended in January 2021, to compel public sector procurement to assess suppliers for the social impact, awarding at least 10% of the supplier score to this aspect.

This will accelerate throughout supply chains in 2021, to compel companies to showcase their position in a transparent way – systems and measurements will be needed, and visibility will be high in public forums for those who do not comply.

Engaging early on will provide an advantage for companies and harnessing the collective power of employees will create a trust-based space for resultant higher productivity and profit.

From top line revenue to bottom line profit, your Social Values can drive performance

For more information about measurement, strategy, marketing, and or starting the shift needed to demonstrate Transparency, Authenticity and Trust, contact me philip.webb@investorsincommunity.org or my team info@investorsincommunity.org

In 2017, Emmanuel Faber, CEO of Danone said, “A revolution is cooking, what are we going to do about it?”

In 2019, the Business Round Table, chaired by JP Morgan, said – businesses have responsibilities, not just to their shareholders, but to customers, employees, suppliers and to communities.

Transition from “risk thinking” to “Impact thinking” is now a prevailing force within Equity Investor forums, with $31 trillion diverted from traditional businesses, to those who can demonstrate their ESG credentials and impact

Growing pressures from consumers, supply chains, governments and action groups has meant that businesses can no longer sidestep or ignore the calls for reform, and to integrate their operations with the social values that drive individuals’ behaviours, whole economies, and all communities

In 2019, the Impact Weighted Accounts Initiative (IWAI) was established to ascertain the principles and framework for the filing of Impact reports alongside Financial reports, by all larger companies (500 employees +)

The principle is simple: you cannot manage what you cannot measure

In the near future, GAAP accounts (General Accepted Accounting Principles) will be filed alongside GAIP reports (Generally Accepted Impact Principles) 

The measurement systems needed, must be able to demonstrate Transparency, Authenticity and Trust to appear alongside the company balance sheet

When Investors can correlate the business performance with their proven Impact, then the flow of money will move towards those who are performing above the average. Consumer behaviour will then exaggerate the top line, as the flow of consumer choice and spend diverts to those businesses who are able to demonstrate social and environmental IMPACT

There are two main forces, driving this Movement:

Firstly, the consumer, whose voice is heard by the spend patterns they establish. Following and buying from those businesses who can demonstrate and reliably report on ESG principles, connecting with their stakeholders, community, and planet

Secondly, the tsunami of requirement within SUPPLY chains. As with the GDPR regulations, where customers insisted on demonstrable compliance to remain as a supplier, so will this manifest in due course with Impact reporting and values

Estimates of a tipping point, are 50 out of the 500 companies in the Fortune 500 list in the USA, or closer to home, 10% of the spend of the UK Government being based on Impact suppliers.

For more information about measurement, strategy, marketing, and or starting the shift needed to demonstrate Transparency, Authenticity and Trust, contact me philip.webb@investorsincommunity.org or my team info@investorsincommunity.org

For the last two decades there has been a gradual shift in attitudes towards planet, people, and community.

Labels such as CSR (Corporate Social Responsibility) ESG (Environmental Sustainability Goals) and many others, describes the actions and intent of a growing number of people and businesses towards a better future.
In the last five years an acceleration of efforts and initiatives have grown to show that personal values may be played out in businesses the world over.

Growing pressures from consumers, supply chains, governments and action groups has meant that businesses can no longer sidestep or ignore the calls for reform, and to integrate their operations with the social values that drive individuals’ behaviours, whole economies, and all communities

The measurement of this shift is denoted by something we refer to as IMPACT. This is the effect that our businesses have on the world around us, and is being continually assessed now, by our customers, our employees, and our stakeholders. In short, if your business does not show IMPACT, you will not be in business for much longer.

There is now hardly a company boardroom in the world, where the subject of IMPACT is not being actively discussed.

What is making all these CEO’s change their priorities and focus on the impact their businesses have on their employees, their communities, and the environment, rather than just simply on profit?

In short, they understand, and can see that the values of consumers have changed. They must now deliver and prove positive impact if they want to survive

A recent Accenture report suggest that we are “now in the era of radical visibility, that places companies under the spotlight like never before, as they struggle for competitive advantage in the post COVID-19 era” (Source https://www.accenture.com/_acnmedia/Thought-Leadership-Assets/PDF/Accenture-CompetitiveAgility-GCPR-POV.pdf) 

So, businesses have a simple choice:

Continue in the ways of old and see if they can “ride it out” or adapt and adopt a new way to value their business, their customers, communities, and environment.

Facing a Tsunami, it is often better to locate to higher ground and build on new foundations, rather than “ride it out” and hope this is a passing wave

For more information about measurement, strategy, marketing, and or starting the shift needed to demonstrate transparency, authenticity and trust, contact me philip.webb@investorsincommunity.org or my team info@investorsincommunity.org