The new value equation
I took a year off formal work and have spent this time thinking. One of the things playing on my mind is how we can grow our positive impact on the world through our organisations, personal expertise and actions.
I've been exploring a revised value equation for organisations. One that considers a broader set of stakeholders when developing strategy.
The rise of purpose and impact in business is a continuing trend, amplified post-pandemic and by an accelerating climate crisis.
The shift is building. Three examples are:
💪 1. Human Capital
The post-pandemic “great reflection” has intensified people's quest for purpose in their employment value equation. 1 in 3 employees who changed jobs last year accepted a pay cut (28% lower on average) to work for sustainable or socially responsible organisations.
💰 2. Financial Capital
The global impact investment market surpassed 1 trillion in assets under management - 63% growth since 2019 - with many studies showing it is good business with market rate returns achievable from impact investing.
Nearly 2 in 3 personal investors expect the financial returns of environmentally sustainable companies to be higher than other companies over the next 5 years.
🛍3. Conscious Consumers
Studies show that consumers are increasingly prioritising purpose in their spending. A 2022 study found half of consumers paid a premium (on average 59% higher) for sustainable or socially responsible options.
Are you and your organisation moving with this shift?
🔎 Where does impact sit in your strategy?
❓ What questions should you be asking?
👇 The below booklet has some answers (and the questions).
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