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Measuring success in the Era of Stakeholder Capitalism: A guide to the WEF's metrics

As the business landscape evolves, so do the metrics that companies use to measure their success. Gone are the days when shareholder profits were the only measure of a company's success. Today, companies are recognizing the importance of balancing their financial performance with their impact on a wider range of stakeholders, including employees, customers, communities, and the environment. This new approach to business is known as Stakeholder Capitalism, and it's changing the way we measure success in the corporate world.




What are the World Economic Forum's Stakeholder Capitalism Metrics?

The World Economic Forum's Stakeholder Capitalism Metrics (SCM) initiative is helping to lead this change. The initiative provides a framework for companies to measure their impact on a range of stakeholders and make this information publicly available. The metrics cover four key areas: governance, workers, community, and the environment. By using these metrics, companies can demonstrate their commitment to Stakeholder Capitalism and provide stakeholders with a clearer understanding of their impact.


Let's take a closer look at each of the four areas and what they mean for companies.


Governance: balancing financial performance with ethical business practices

Good governance is essential for creating a fair and sustainable business environment. The governance metrics help companies assess their board diversity, executive pay, and anti-corruption measures. Companies that score well on these metrics demonstrate their commitment to responsible and ethical business practices.


Workers: prioritizing employee well-being for long-term success

A company's employees are its most valuable asset, and their well-being is essential for long-term success. The worker metrics measure a company's commitment to fair pay, diversity, and inclusion, as well as their investment in employee training and development. Companies that prioritize their workers are more likely to have a motivated and engaged workforce, which can lead to increased productivity and profits.


The Diversity and Inclusion metric measures a company's efforts to promote diversity and inclusion in the workplace. A diverse and inclusive workplace can lead to increased creativity and innovation, as well as better decision-making and customer engagement.


Web Accessibility: ensuring equal access to digital resources and services


Web accessibility can also be incorporated into the Diversity and Inclusion. This metric already assesses a company's efforts to promote diversity and inclusiveness, covering various forms of diversity such as demographic diversity, diversity of experiences, perspectives, and abilities.


When it comes to web accessibility, it's all about making sure that everyone, including those with disabilities, has equal access to the company's digital resources and services. That way, companies can show just how serious they are about creating a truly inclusive workplace where everyone is valued and has equal opportunities.


To make this happen, a company would need to evaluate its efforts in making its website and other digital resources accessible to all users. This includes checking if their website is compliant with web accessibility standards such as the Web Content Accessibility Guidelines (WCAG) and offering training and support programs for employees on web accessibility.

Incorporating web accessibility into the Diversity and Inclusion Metric sends a clear message that a company is committed to creating a diverse and inclusive workplace for all.


Community: contributing to the positive social and economic impact

Companies have a responsibility to contribute to the communities in which they operate. The community metrics measure a company's investment in local communities, including its support for small businesses, education, and health programs. Companies that score well on these metrics demonstrate their commitment to creating positive social and economic impact in the communities they serve.


Environment: minimizing the impact of business on the planet

The impact of business on the environment is a growing concern, and companies are being held to increasingly high standards when it comes to environmental performance. The environmental metrics measure a company's carbon footprint, energy efficiency, and water usage, as well as its investment in renewable energy. Companies that prioritize their environmental impact are better positioned to adapt to the challenges of a changing climate and protect the planet for future generations.


Green IT and Software: promoting sustainability in technology and information systems


Green IT and software can also be integrated into the Environment Metric.

Green software refer to the use of technology and information systems in an environmentally sustainable way. This includes using energy-efficient hardware, reducing e-waste, and using software that is designed to minimize its impact on the environment.


Incorporating Green IT and software into the Environment Metric would involve evaluating a company's efforts to use technology in an environmentally responsible way. This could include assessing the energy efficiency of the company's hardware, its recycling and e-waste management practices, and the environmental impact of the software they use.


By doing so, a company can demonstrate its commitment to reducing its impact on the environment and promoting sustainability in all aspects of its operations. This helps to show stakeholders that the company is not only environmentally conscious but also proactive in finding ways to minimize their impact on the planet.


Why Stakeholder Capitalism Metrics Matter for the Future of Business

Stakeholder Capitalism Metrics are changing the way we measure success in business. By taking a more holistic approach to measuring a company's impact, these metrics help companies demonstrate their commitment to responsible and sustainable business practices. They provide stakeholders with a clearer understanding of a company's impact and help to drive positive change in the corporate world.


At Negebu, we believe that Stakeholder Capitalism will play a major role in the future of business, and we're proud to be part of this movement.






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