Traditional drivers of value (cash flow, turnover and profit, or stock price) have been shaken – ethical and sustainable business are driving superior financial performance. The principles and pursuit of good business are no longer a choice; they’re the only way forward for sustainable long-term growth and profit.
Society is becoming increasingly intolerant of brands and businesses that embrace consumerism at the price of trashing the planet. Activism has become entirely mainstream – climate change and issues of inequality are no longer just the pursuit of hardcore campaigners. Consumers and investors alike are demanding business takes responsibility for their impact on humanity’s health and the planet’s prosperity.
This is a golden opportunity to redraw how we create and measure value in business and reframe the boundaries of economics, but where does the triple bottom line stand now that the priority of many businesses has switched from growth to survival?
Businesses are switching to reporting on a triple bottom line, but how do we define KPIs when ESG factors can be hard to measure? In a purpose-led world, how can business assess value and development in non-financial terms? What are the alternative metrics for success?