Stakeholders and investors increasingly expect companies to play a larger role in community and social impact, environmental sustainability and employee wellbeing. No matter where you are on your company’s journey, failing to prioritize impact as a core strategic imperative is, simply put, bad for business.
In today’s evolving economy, companies that pursue social and environmental initiatives experience improved financial performance, a competitive edge with consumers, and attract and retain top talent, just to name a few.
According to Global Strategy Group’s report, “The Shifting Politics of Doing Good in America,” “88% of Americans approve of companies that have a positive impact on their communities, and 77% agree that corporations have a responsibility to bring about social change on society’s most important issues.”
Here in New Hampshire, we have a history of business, nonprofit and education sectors coming together to solve some of the Granite State’s most pressing issues. Organizations like NH Businesses for Social Responsibility and the NH Center for Nonprofits regularly convene cross-sector leaders to generate new ideas and solutions and create partnerships to drive change.
But how do we measure impact? The answer is not always simple, as is the case with any change initiative. Effectively measuring impact hasn’t always been straightforward, but thanks to advances in technology and thought leadership in this space, it can be a simple and beneficial tool for keeping stakeholders happy while improving business outcomes.
Starting a social impact initiative will be unique to you and your organization. Here are some ideas to get you started.
Develop a theory of change (TOC). The TOC is a comprehensive framework that establishes how your company’s activities lead to desired outcomes and impact in a particular context. This process establishes a clear link between what you do and how that gets you to achieving your goals.
Conduct assessments. Materiality assessments are one tool to help you identify the significance of environmental and social issues within your organization and community. This process helps you identify issues by engaging with stakeholders to learn what matters to them. Think of stakeholder engagement as a strategic ally in developing actions to achieve your goals. Explore if NHBSR’s impact assessment tool may be right for you.
Devise a strong impact measurement and management (IMM) strategy. In order to gain the most actionable data, it’s critical to create an impact measurement strategy that focuses on the ongoing engagement of both internal and external stakeholders. This allows you to learn and understand their unique needs, expectations and perspectives now and over time. By engaging stakeholders meaningfully and strategically, we can uncover hidden opportunities and potential impacts on the organization while understanding their priorities.
Build relationships. Building strong relationships should be central to your strategy for gathering unique information that leads to informed decision-making. It is vital to find creative ways to engage stakeholders to gain real and actionable insights. This includes establishing employee resource groups, building relationships with community organizations, convening external focus groups and joining cross-sector coalitions. Consider the social and environmental realities of the spaces your business touches. This extends to your brick-and-mortar spaces as well as your employee’s spaces. Are there gaps, disconnects, opportunities?
The results of a comprehensive social impact strategy enable you to demonstrate accountability and transparency, share your story and values with data-driven insights and support sustainable development. As stakeholders and the public at large continue to scrutinize the role of business in social and environmental impact, the time to establish your impact strategy is now.
Heather Keyworth Conley worked in the nonprofit sector for 20 years before joining the DEI team at Nike Inc. Heather’s commitment to equity and sustainable development prompted her to launch K+ Collaborators in 2019 to assist organizations in developing social impact initiatives. Sustainability Spotlight is produced monthly for NH Business Review by New Hampshire Businesses for Social Responsibility. To learn more about ways to advance your sustainability, visit NHBSR.org.
