A recently published article in Stanford University’s Closer Look series analyzes the growing trend of Environmental, Social, and Governance (ESG) investing that the Enterprise Engagement Alliance believes is a major driver of Enterprise Engagement and ISO 10018 Quality People Management and other standards. A growing database of over 17,000 companies makes it increasingly easy to track the relative scores of businesses worldwide, and the results aren’t pretty.
Over the last 11 years since the Enterprise Engagement Alliance (EEA) was formed, its curriculum has stuck steadfastly to the focus on engagement across the enterprise, while the general buzz has continued to reflect the siloed world of business by focusing on customer or employee engagement separately. (And now, because engagement has refused to budge, the new buzzword is “experience.”) The Business Case for ESG Investing
, by Brandon Boze, Margarita Krivitski, David F. Larcker, Brian Tayan, and Eva Zlotnicka, in Sanford University's Closer Look
series highlights the growing recognition that it’s the engagement of all stakeholders that counts. If nothing else, their logic goes, addressing the strategic interests of all stakeholders is a significant risk-mitigator.
In the meantime, demonstrating the increasing interest in what ESM calls Enterprise Engagement, a fast-growing service known as CRShub.com
makes it easy to find ratings and rankings of over 17,000 companies and growing from 139 countries based on 630 sources of CSR (Corporate Social Responsibility) ESG (Environmental, Social, and Governance) resources, and to even establish low-cost APIs for advanced analysis.
Noting the interest in ESG investing, the Stanford article cites Larry Fink at BlackRock: “To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all their stakeholders, including shareholders, employees, customers, and the communities in which they operate. Without a sense of purpose, no company, either public or private, can achieve its full potential. It will ultimately lose the license to operate from key stakeholders. It will succumb to short-term pressures to distribute earnings, and, in the process, sacrifice investments in employee development, innovation, and capital expenditures that are necessary for long-term growth.”
The authors go on to cite none other than a leading corporate attorney Martin Lipton of Wachtell, Lipton, Rosen & Katz, who they say is telling “corporate clients to adopt what he calls ‘The New Paradigm,’ a more stakeholder-centric orientation that emphasizes a long-term investment horizon: In essence, the New Paradigm recalibrates the relationship between public corporations and their major institutional investors and conceives of corporate governance as a collaboration among corporations, shareholders, and other stakeholders working together to achieve long-term value and resist short-termism.” This should sound familiar to ESM readers.
The authors note that organizational boards “can improve their analysis of ESG risks and opportunities at a practical level by considering how long-term investors integrate ESG factors into their decision-making process. To do so, we examine a framework informed by the experience of Value Act Capital,” which is a long-term investor that has determined that ESG factors can: “Provide an effective risk-management framework; provide a new lens for strategy development and growth opportunities; and address the demands of stakeholders such as customers, employees, and investors.” This is the definition of Enterprise Engagement.
Master the Principles of Enterprise Engagement to Achieve Organizational Goals and Enhance Your Career
Profit from a new strategic and systematic approach to engagement to enhance your organization’s brand equity; increase sales, productivity, quality, innovation, and safety, and reduce risks.
Get trained to become a Chief Engagement Officer for your organization.
Achieve ISO 10018 Quality People Management Certification to demonstrate your organization’s strategic commitment to people to your customers, employees, distribution partners, vendors, communities, investors, and regulators.
Learn how to create Sustainability or Integrated Reports for Your Organization or Clients.
Get up-to-speed on ISO human resources standards and guidelines to enhance HR performance.
Live Education: Enterprise Engagement in Action. Take advantage of scheduled monthly live webinar preparation courses for the Certified Engagement Practitioner designation consisting of three one-hour classes and of quarterly Advanced Engagement Practitioner courses consisting of three one-hour webinar classes. The AEP course is for individuals or teams seeking preparation ISO 10018 professional certification status. ICEE periodically runs regional one-day workshops on ISO 10018 Quality People Management principles and certification.
Resources: The Brand Media Coalition, the only guide to the story-telling power of brands and where to source them for business, event, promotional gifting, and rewards and recognition. 2019 Enterprise Engagement Solution Provider Directory. The only directory of engagement solution providers covering all types of agencies and tactics as well as insights on how to select them.
Communities: The Enterprise Engagement Alliance and Advocate and the Brand Media Coalition free resource centers offering access to the latest research, news, and case studies; discounts, promotions, referrals, and commissions, when appropriate to third-party solution providers from participating coalition solution provider members.
Written specifically to provide CEOs and their leadership teams a concise overview of the framework, economics, and implementation process of a CEO-led strategic and systematic approach to achieving success through people. (123 pages, $15.99)
Enterprise Engagement: The Roadmap 5th Edition
The first and most comprehensive book on Enterprise Engagement and the new ISO 9001 and ISO 10018 quality people management standards. Includes 36 chapters detailing how to better integrate and align engagement efforts across the enterprise. (312 pages, $36.)
• 10-minute short course: click here for a 10-minute introduction to Enterprise
• Engagement and ISO standards on Coggno.com.
• 5-minute Audiopedia summary of the Enterprise Engagement field.
• The International Center for Enterprise Engagement at TheICEE.org, offering: ISO 10018 certification for employers, solution providers, and Enterprise Engagement technology platforms; Human Resources and Human Capital audits for organizations seeking to benchmark their practices and related Advisory services for the hospitality field.
• The Engagement Agency at EngagementAgency.net, offering: complete support services for employers, solution providers, and technology firms seeking to profit from formal engagement practices for themselves or their clients, including Brand and Capability audits for solution providers to make sure their products and services are up to date.
• C-Suite Advisory Service—Education of boards, investors, and C-suite executives on the economics, framework, and implementation processes of Enterprise Engagement.
• Speakers Bureau—Select the right speaker on any aspect of engagement for your next event.
• Mergers and Acquisitions. The Engagement Agency’s Mergers and Acquisition group is aware of multiple companies seeking to purchase firms in the engagement field. Contact Michael Mazer in confidence if your company is potentially for sale at 303-320-3777.
Enterprise Engagement Benchmark Tools: The Enterprise Engagement Alliance offers three tools to help organizations profit from Engagement. Click here to access the tools.
• ROI of Engagement Calculator. Use this tool to determine the potential return-on-investment of an engagement strategy.
• EE Benchmark Indicator. Confidentially benchmark your organization’s Enterprise Engagement practices against organizations and best practices.
• Compare Your Company’s Level of Engagement. Quickly compare your organization’s level of engagement to those of others based on the same criteria as the EEA’s Engaged Company Stock Index.
• Gauge Your Personal Level of Engagement. This survey, donated by Horsepower, enables individuals to gauge their own personal levels of engagement.
For more information, contact Bruce Bolger at Bolger@TheEEA.org, 914-591-7600, ext. 230.
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