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BCG Total Societal Impact - Coggle Diagram
BCG Total Societal Impact
BCG research figured out that organizations that outperform in social and environmental performance, accomplished higher returns
Adding TSI principles to corporate strategy and operations will enable them to leverage their core business to contribute to society in a way that enhances TSR
Corporate focus was always towards total shareholders returns (TSR)
Total societal impact (TSI)
It is a collection of measures and assessments that capture the economic, social and environmental impact
A study on how 300 companies in five industries are integrating social impact into their strategy and operations using ESG company metrics
They found Clear links between financial and nonfinancial performance
Some ESG nonfinancial performance had significant impact on company valuation
Factors why companies are increasingly focusing on their societal impact
People, NGO's and governments awareness
Investors are capturing opportunities related to ESG
Data availability of ESG performance
TSI adoption by corporates grant them access to new locations
Adopting TSI lens can spur innovation
, assisting in creating new products
Positive societal impact companies attracts and retain employees and talents
Companies conforming with local policies and supporting the local societal objectives can enhance their relationship with governments, regulators and create business opportunities .
Reducing cost and risk in supply chain
Strengthening the brand
ESG performance
Environmental, social and governance is a criteria investors are using to evaluate the societal impact of a company
Success factors for companies aiming to deliver both TSR and TSI
Small distinctive set of TSI topics
TSI areas with meaningful impact
Each TSI area should encompass limited initiatives integrated and driven with business units
Clarify how TSI is embedded in the company strategy
How financial and societal benefits are expected to be achieved
Partnership with other organizations to create large scale and high impact initiatives
Measure TSI against goals and their effect on financial performance
Engage with key stakeholders on the societal issues that are important for them
The right management structure, governance and incentives