Session 5: Corporate purpose, measurement, and performance
Speakers' Presentations:
- Gaizka Ormazabal (IESE Business School and ECGI): Corporate Purpose, Measurement, and Performance
One of the primary challenges in measuring corporate purpose is identifying relevant metrics that capture the company's impact beyond financial performance. Metrics such as employee engagement, environmental impact, and community engagement can be difficult to quantify, measure and align with a company's purpose. Companies must effectively communicate their purpose to stakeholders, including investors, customers, employees, and the broader public. This requires clear and transparent reporting that goes beyond financial metrics to include non-financial metrics that reflect the company's impact on society and the environment. Companies must also develop performance evaluation and incentive structures that align with their purpose. This requires a rethinking of traditional performance metrics and reward structures to ensure that they are aligned with the company's broader purpose and values.