In 2017, The Oxford Said Business School in collaboration with Mars Inc. Catalyst, published the findings of a study into corporate sustainability entitled Completing Capitalism. The study authored by Jay Jakub and Bruno Roach, lays out a methodology by which companies may measure the diverse forms of capital required to operate a healthy business, each of which support the financial bottom line of a company, the traditional marker of corporate success.
In doing so, they have created a rounded framework for measuring corporate health which can operate for the benefit of the natural [environmental] and social [individual and community] as well as financial [economic] benefit for all stakeholders. A true triple bottom line value framework.
Resonate has adopted the the following measures to assess the effectiveness of company probono and staff volunteering programs on two forms of capital - human capital and social capital - and seeks to present this data to companies to show how they affect the financial bottom line of an organisation.
We use these measures to show how effective probono moves from the realm of CSR into shared value for the company by positively affecting the financial bottom line of the company.
1. Human Capital
Most companies acknowledge their staff or human resources are critical elements of business success. As such, most firms seek to attract, engage and retain quality staff in a competitive manner, caring for their talent with performance bonuses, learning and development pathways, various health and leave benefit packages, and more. However, Roach and Jakub's study outlines in detail measures which focus on how a company provides opportunities for staff to connect with the mission, vision and values of the company while being exposed to opportunities which provide upward mobility, and recognition by peers and managers.
As such, Resonate's facilitated probono service programs and skilled volunteer engagements serve as perfect opportunities for company investment in their teams.
(a) Company Based Human Capital
o Corporate Identity -
- Does the company live out its mission, vision, values and goals?
- Are the culture, business strategy, sustainability strategies all aligned?
- Do the workers see this and believe in the company?
If YES, the value to the staff engagement and retention is similar to a 30% pay increase.
o Employees Social Capital
- Are the individual’s values aligned to the corporate strategy?
- Is there measurable trust, social cohesion, community, capacity for work for the common good between team and their managers?
If YES, the value to staff engagement and retention is similar to 15% pay increase.
(b) Individual Centred Human Capital
o Prospect of Upward mobility
- Can the employee access opportunities to progress, grow and be challenged?
IF YES, the value to staff engagement is worth a 11% pay increase
o Status and social recognition
- Is the employee recognised favourably?
If YES the value to staff engagement is worth a 9% pay increase
o Line manager effect
- Does the direct up line train, promote and support the employee across length of tenure?
If NO, the value to staff engagement is negatively worth -2% pay decrease
2. Social Capital
The second area of value Resonate seeks to measure through probono engagement, is the value to the community receiving the input. Traditional forms of philanthropy or probono service are focused on delivering an product or service of value, for example a piece of machinery/ or technology, a gift of finances or even services such as education and health programs. However, the Mars Inc. study showed that the most lasting investment into a community is in the form of ‘social fertility investment.’ This can be seen as activities which directly enhance the social capital of the community into which the investment is made. Positive social fertility investment is shown by Roach and Jakub's study, to foster interdependence and identity formation within a community, and further ready the community for other forms of investment. This means companies which conduct business operations within said communities can expect their own business operations to flourish after such an investment.
As such Resonate uses the following measures to assess the impact of community engagement placements and how they positively affect the community into which they are connected.
(a) Community Based Social Capital
Interpersonal: o Trust - Does lending and borrowing occur? o Solidarity - Does volunteering and donating occur? o Responsibility - Do groups/ persons fix wrongs and make account for errors?
Structural o Exclusions vs. acceptance - Are community boundaries adhered to? o Collective actions - Do collective actions occur? o Horizontal density - Do group affiliations and group structures exist? o Decision making - Does decision making occur top down? Bottom up? o Socio demographic - Do gender, age, religion, ethnicity function healthily?
Positive increase in all the above points, correlates with community health and fertile environment for business growth.
The Mars Catalyst study shows how companies can use their probono and skilled volunteer programs to leverage valuable human capital investment into their teams and social capital investment into the communities within which they work.
If your company is interested in finding out more about how you can invest in your human capital and staff teams through effective social engagements, probono services and skilled volunteering, please reach out to email@example.com.
The Resonate Team.