How well do these corporations create best value for citizens, customers, employees and shareholders?
“Long-term value creation requires effective management of three forms of capital: financial, physical and human. Strong Governance, along with the effective management of environmental and human capital factors, increases the likelihood that companies will perform over the long-term and manage risk effectively.” CalPERS, April 2016.
A recent innovative development is our Human Governance Scorecard, which has been created from the OMINDEX human governance ratings system to identify how companies use their human capital to serve society . All companies shown above have already been given a rating and are scored here specifically against these key ratings indicators that directly relate to societal benefit:
Societal value: Mature organizations put society’s interests first, knowing that is the only way to maximise value for all stakeholders in the long-term.
Corporate Purpose: The nature and extent of corporate commitment to a clear and unequivocal organizational purpose defined against the MI standard, i.e. the provision of the best quality product or service at the lowest possible cost (having minimised the risk of external harm e.g. environmental impact)
Human Governance: The quality and capability of board, leadership and senior management (in terms of human governance and human capital management) to manage material value and risk.
Innovating people: How many ideas does the company generate from its human capital? One idea per person per year equals 100%. MI exemplar Toyota regularly achieves 500%+.
Realizing human value: the extent to which Human capital is managed to achieve the best value from the aggregation of four interrelated company performance factors: Output, Cost, Revenue, and Quality (OCRQ)
Supply chain health: the extent to which partner organisations are strategically and systemically integrated in a harmonious relationship to generate value (OCRQ) and avoid operational risk.
If you want to know your company’s rating, or those for a specific group of companies and how they compare against our HG Scorecard please contact Stuart Woollard.