This annual ranking of effective companies addresses many of the key elements of Stakeholder Capitalism when it comes to people management.
Microsoft, Amazon, Apple, International Business Machines, and Intel top the 2021 list of 250 Best Managed companies, created by the Drucker Institute for the Wall Street Journal. The rankings are based on an independent analysis of the five dimensions of corporate performance originally developed by the management consultant legend Peter Drucker: Customer Satisfaction, Employee Engagement and Development, Innovation, Social Responsibility and Financial Strength.
The Management Top 250 ranking, as published in The Wall Street Journal, is based on a holistic measure of corporate “effectiveness” that was developed by the Drucker Institute, a part of Claremont Graduate University in Claremont, Calif. “Effectiveness” is defined as “doing the right things well.”
The ranking includes US companies whose shares are traded on the New York Stock Exchange or Nasdaq Stock Market, and that meet criteria, described below, related to their value and prominence.
The measure seeks to assess how well a company follows a core set of principles advanced by the late Peter Drucker, a professor, consultant, author, and longtime Wall Street Journal columnist. Drucker died in 2005.
In explaining the rankings, the Drucker Institute says, “Much like human health, intelligence or athleticism, corporate effectiveness is a latent variable, meaning that it cannot be directly observed. But it can be inferred from other variables that can be observed (known as indicators).
As a result, “a slightly different weight was computed for each dimension based on the degree to which it was found statistically to contribute to overall corporate effectiveness. Those weights were as follows: Customer Satisfaction = 19%; Employee Engagement and Development = 19%; Innovation = 23%; Social Responsibility = 25%; and Financial Strength = 14%.”
The organization says the “model rests on the belief that all five dimensions are interrelated and influence each other over time—what social scientists call reciprocal causation. While it might be possible to untangle those influences with longitudinal data—and the Drucker Institute has conducted research to better understand how different parts of the model relate to one another—that is not the immediate goal of this ranking. Rather, the main purpose is to provide a snapshot of overall corporate effectiveness at a point’s model, there are 34 indicators that fall under the five dimensions of corporate performance.”
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Master the “S” of Environmental, Social, Governance (ESG), A.k.a. Stakeholder Capitalism
The Enterprise Engagement Alliance at TheEEA.org is the world’s first and only organization that focuses on outreach, certification and training, and advisory services to help organizations achieve their goals by fostering the proactive involvement of all stakeholders. This includes customers, employees, distribution and supply chain partners, and communities, or anyone connected to an organization’s success.
Training and Thought Leadership
- Founded in 2008, the Enterprise Engagement Alliance provides outreach, learning and certification in Enterprise Engagement, an implementation process for the “S” or Social of Stakeholder Capitalism and Human Capital Management and measurement of engagement across the organization.
- The Enterprise Engagement Alliance provides a training and certification program for business leaders, practitioners, and solution providers, as well as executive briefings and human capital gap analyses for senior leaders.
- The EEA produces an education program for CFOs for the CFO.University training program on Human Capital Management.
- Join the EEA to become a leader in the implementation of the “S” of ESG and Stakeholder Capitalism.
- The ESM information portal and The Enterprise Engagement Advisors Network solution provider marketplace cover all aspects of stakeholder engagement, and the EEA information library lists dozens of resources.
- The RRN information portal and Brand Media Coalition marketplace address the use of brands for gifting, incentives, recognition, and promotions. The BMC information library provides information and research resources.
The EEA Human Capital Management and ROI of Engagement YouTube channel features a growing library of 30- to 60-minute panel discussions with leading experts in all areas of engagement and total rewards.
- Enterprise Engagement for CEOs: The Little Blue Book for People-Centric Capitalists. A quick guide for CEOs.
- Enterprise Engagement: The Roadmap 5th Edition implementation guide. A comprehensive textbook for practitioners, academics, and students.
Enterprise Engagement Advisory Services
The Engagement Agency helps:
- Organizations of all types develop strategic Stakeholder Capitalism and Enterprise Engagement processes and human capital management and reporting strategies; conduct human capital gap analyses; design and implement strategic human capital management and reporting plans that address DEI (Diversity, Equity, and Inclusion), and assist with managed outsourcing of engagement products and services.
- Human resources, sales and marketing solution providers profit from the emerging discipline of human capital management and ROI of engagement through training and marketing services.
- Investors make sense of human capital reporting by public companies.
- Buyers and sellers of companies in the engagement space or business owners or buyers who seek to account for human capital in their mergers and acquistions.
For more information: Contact Bruce Bolger at Bolger@TheICEE.org or call 914-591-7600, ext. 230.