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Algebraic Equation for Measuring Impact

Implementation of a point system for evaluating potential recipients of the reward. Concept includes quantitatively measuring the internal and external impact that the businesses have. In addition, taking into account qualitative measures as well.

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Written by DeletedUser

Steps:
1. Include all of the criteria for a company's internal impact measurements (and community levels), and define each of these variables. Some examples are:
Pe = People - quality of work life and culture (measured via profit sharing, work life-balance, equal pay for equal work)
St = Implementation of sustainability initiatives (i.e. solar, wind, recycle, reuse)
Vw = Volunteer program and no. of employees that participate and/or total per capita hours.

2. Include all of the criteria for a company's external impact measurements (on a local community level and global level)
Pt = What partnerships have they made with other global businesses to promote world benefit
Do = Percentage of income the company has donated to non-profits and the diversity of non-profits that they have contributed to.
Mi = What are the missions, goals and operating philosophies of the company and do they have a net positive global impact?

3. Each of these criteria that the business meets should be multiplied by a factor that takes into account the duration of time; i.e. how long have they been doing this. Have these businesses been pioneers in sustainability and social practices? We should reward companies that have already inspired many global businesses and have been implementing sustainability measures for years, because it is the right thing to do. Reward those companies that are forward thinking and were agents of change before it was popular to be sustainable.

4. Combine the Internal Impact and External Impact and reward for length of time for each initiative that has been in practice.
Some of these criteria may not be as easily measured as others and some may not be quantifiable at all (may be able to do a ranking scale for those). I have mentioned just a few criteria, there will be dozens of different criteria that we have to look at to get an idea of the impact of the company globally.

How does your concept celebrate, identify or inspire for-profit businesses that act as agents of world benefit?

This concept will celebrate and identify these businesses who are already inspiring for-profit businesses to act as agents of world benefit. Identifying the appropriate business that already has global impact and a global name will shed light on these companies and reward them on a global level. Newman's Own is one company that embodies the essence of this reward. They have partnered with other global organizations to promote global good. Some examples of partnerships are with: Ford Motor Co, VolunteerMatch, Harvard, etc...In addition, they have been practicing sustainability measures for nearly 30 years and have had lasting global impact as well. Bob's Red Mill is another company that inspires. A couple years ago, the owner walked into work and gave the entire business to his employees. His philosophy has always been, "People before Profit". If we identify the right companies and if we market this concept correctly, it will have strong global impact.

How will your concept help us create or leverage stories of world benefit that are sticky and shareable?

While it will be quite a challenge, quantifying the measurements, it gives us a way to compare different size companies to each other. We need to find companies that embody this concept and live and breathe it every day. If we identify companies that encompass one or two of these characteristics, but not most of the criteria we set forward, we will not be able to build stories that "stick" and people will not want to share them. Most people do not know that Newman's Own donates all profits to different charities. In addition, the history and story of the company is quite inspiring for those that know about it. If we can spread knowledge of these companies and "identify" the good that they have done, people will know about it and people will talk about it.

What will it take to scale your concept so that its reach is global and widespread?

Partner with other MBA programs or other Universities around the world to help market the concept. In addition, partner with businesses that are already doing good to spread this concept. Have businesses enter and apply to be recognized and/or to compete for this reward. Also, businesses can nominate businesses that inspire them for world benefit.

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Measuring Impact

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DeletedUser

Great concept, I was trying to work towards something like this, but what I came up with isn't nearly as thorough. http://www.openideo.com/open/business-impact-challenge/concepting/measuring-impact/

Would this be something that companies calculate internally, or would there be an agency that evaluates companies performance?

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DeletedUser

Alan - Thanks for your feedback. Thanks for the link to your concept as well. I read through your idea and will post my comments. I think that companies can calculate internally (the things that are quantitative), but the information needs to be verified and/or also calculated by the committee.

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Great discussion guys! You can also link both of your concepts via our Build Upon Feature. (go to Update Entry on the right of your post, scroll down to the Build Upon feature, search the name of the relevant concept and drag over as per instructions and hit Enter) This helps others connect the dots between related ideas and encourages them to join conversations on both. Viva collaboration!

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