Some still believe the only social responsibility of corporations is to maximize profits.
Others still want to debate the matter.
If you’re stuck winning over the un-woke, arm yourself with facts and figures* because there’s plenty of proof it pays to do good.
Potential for market value, share price, and risk reduction
- – Increase market value 4-6%
- – Reduce share price volatility 2-10%
- – Reduce cost of debt 40%
Potential for marketing, sales, and brand/reputation
- – Increase revenue up to 20%
- – Increase price premium up to 20%
- – Establish brand and reputation value as 11% of total company value
- – Avoid revenue losses up to 7% of total market value
Potential for human resources
- – Reduce staff turnover up to 50%
- – Increase willingness to accept pay variability: 5% pay cut
- – Increase productivity up to 13%
More and more, the data are on your side.
So muster troops, assemble artillery, and fire away!
Larry Fink, Chairman and CEO of Blackrock, Inc., one of the biggest investment management firms in the world, in a letter to CEOs:
“Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.”