Why Social Performance is Your Next Business Advantage
Social challenges, including economic inequality, disparities in health and education, and the climate crisis, impact businesses, economies, and societies worldwide.
The BCTI Flagship Report highlights stark inequalities—the richest 10% hold over 75% of global wealth, while the poorest 50% own just 2%. Rapid technological advancements further introduce both risks and opportunities.
Many companies overlook the business value of strong social performance due to a lack of vision and insights. Meanwhile, growing regulatory and societal pressures demand transparency on social impact.
To stay competitive, businesses must understand their social risks and opportunities and leverage data-driven strategies to enhance decision-making, performance, and long-term resilience.
The approach outlines five key steps:
- Identify & Prioritize: Understand and prioritize key social issues relevant to your business.
- Measure & Quantify: Use data to assess social performance and link it to business value.
- Analyze & Value: Determine how social factors influence financial performance and business resilience.
- Act & Improve: Implement strategies to enhance social outcomes and business competitiveness.
- Report & Engage: Transparently communicate progress and drive meaningful stakeholder engagement.
By following these steps, companies can better integrate social performance into their decision-making processes, which will improve sustainability and business success.
This approach connects business activities to their impacts, risks, and opportunities (IROs), demonstrating how they influence social impact and business performance. Double materiality helps companies align their social impact with strategic business goals, enabling better prioritization and decision-making. It also leverages existing IROs data, allowing businesses to maximize social and financial value efficiently.
