This computational tool assists in determining an organization’s progress toward broader societal goals beyond mere profit. It typically measures performance across five key areas: Board Diversity, Beyond Profit (social impact), Better Business (ethical practices), Bigger Economy (fair wages and local sourcing), and Brighter Environment (sustainability). An example application might involve evaluating a company’s carbon emissions reduction strategies against established targets and comparing them to industry best practices.
Assessing performance through this five-pronged approach provides a more holistic understanding of an organization’s overall contribution to society. It helps businesses identify areas for improvement, benchmark themselves against competitors, and communicate their commitment to stakeholders. This integrated approach to performance measurement reflects a growing awareness of the interconnectedness of business success and societal well-being, a shift from traditional, solely profit-driven models. It fosters transparency and accountability, driving organizations to adopt more responsible and sustainable practices.
