It is time for the ‘S’ in ESG to take centre stage
Why the Maturity Institute (MI) has become an Ally of WBA
The simple answer is we share the same mission. The WBA’s “mission is to build a movement to measure and incentivise business impact towards a sustainable future that works for everyone”. The MI’s mission is to maximise the world’s ‘Total Stakeholder Value’, by helping corporations, and the people they employ, to become more mature. By ‘mature’ we mean everyone having to learn the capabilities necessary to achieve the very best financial and societal value (the greatest good for humanity) simultaneously; while continuously reducing external harm, to meet the UN’s SDG’s.
The Maturity Institute was founded in 2013 with the very bold objective of being the very first, multi-disciplinary, management research and development institution to set global standards of ‘professional management’, defined as scientific and evidence-based decision making. Obviously, setting a standard to measure the total impact of every management discipline would be impossible unless we could develop a global, performance measurement system to “encourage and incentivise” responsible corporate behaviour. We designed our OMINDEX® (organizational maturity index) diagnostic with this very specific purpose in mind. It affords everyone a much a clearer picture of corporate health and, in doing so, produces an integrated analysis of human, environmental and financial performance.
Now, as an Ally of WBA, MI wants to bring its hard-earned experience and expertise to help support the common cause of a sustainable world. We can do this by working from our common, methodological platforms. Both WBA and MI are predicated on deploying benchmarking scales.
WBA’s benchmarks already perfectly complement MI’s ‘Total Stakeholder Value’ measures of company outputs, costs, revenues and quality by filling in much detail on potential and actual ‘external harm’. At the same time, MI’s benchmarks provide vital information to augment WBA’s benchmarks for ‘Social’, ‘Financial System’ and ‘Companies’. ‘Social’ in particular, is a special focus of OMINDEX®, which puts human capital (people as employees, citizens, parents, consumers, suppliers etc.) at the very heart of corporate responsibility. We have also been helping organisations to rate ‘Companies’ on our ‘AAA’ OMINDEX® scale (that mirrors credit rating) since 2015 and measuring their performance, in hard financial value terms, to such an advanced level, that our data has been incorporated by equity analysts in company valuation. This WBA Alliance, with MI, seems to be a marriage made in SDG/ESG heaven.
The figure below illustrates how the Maturity Institute’s ‘value management standard’ maps with all SDGs.
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Written by: Paul Kearns, Chair, Maturity Institute