Today, investors are able to identify “good” companies and “profitable” companies but not companies doing the most good most profitably which is a missed opportunity for business, investors and society. In “Hybrid Metrics: Connecting Shared Value to Shareholder Value,” we introduce a new approach that combines companies’ social and environmental impact with standard measures of financial performance, making the connection between the two explicit.
Today, investors are able to identify “good” companies and “profitable” companies but not companies doing the most good most profitably which is a missed opportunity for business, investors and society. In a new research report, “Hybrid Metrics: Connecting Shared Value to Shareholder Value,” we introduce a new approach that combines companies’ social and environmental impact with standard measures of financial performance, making the connection between the two explicit.
Among many things, COVID-19 has revealed just how broken the world’s health systems are including traditional insurance models. For nearly 30 years, Discovery has challenged the status quo by using behavioral science to develop a shared value insurance model that incentivizes people to be healthier while delivering superior business value by driving down healthcare costs.
The world has been in a climate emergency for years and scientists say that in order to undo and mitigate the most extreme scenarios, 2020 must be the year for comprehensive cross-sector climate action. At the same time, climate change and growing water scarcity are compromising agricultural productivity, accelerating food insecurity, and increasing costs for producers and consumers.
The widespread health and economic impacts of COVID-19 have highlighted the critical need to support vulnerable populations, many of whom are disproportionately impacted due to existing inequities. As a long-time leader of financial inclusion programs, Mastercard recognizes that a long-term sustainable recovery is not possible unless more people are brought into the digital economy.
A company’s entire supply chain can make a significant impact in promoting human rights, fair labor practices, and environmental sustainability but with widespread and complex webs of suppliers, companies often report that transforming supply chains is one of the largest challenges to meeting their ESG targets. For nearly three decades Walmart has worked in pursuit of its goal to make sustainability a business imperative and has taken a shared value approach to make large-scale and lasting improvements to the ecosystems most salient to its business.
The global impact of COVID-19 has exposed policies that maintain and even promote structural inequities, and in some cases, indifference to suffering. Companies responding to the many facets of the crisis understand the inextricable link between health outcomes of their employees and customers, with their own corporate health. Successful companies are proving that agility and an openness to new ways of working are better able to meet urgent needs with innovative solutions and partnerships.
In the lead up to our conversation with Rebecca Henderson of Harvard Business School as part of our Resilience Reimagined Speaker Series, we sat down with her to discuss the impetus of her book, Reimagining Capitalism in a World on Fire, and how she’s thinking about the current COVID-19 crisis.
1. What was the catalyst that led you to write, Reimagining Capitalism in a World on Fire? What sets it apart from previous books critiquing capitalism?