Today I was joined by Alex Edmans, Professor of Finance, London Business School and B Corp UK advocates Jenny Kitchen, CEO Yoyo & Galahad Clark, Founder Vivobarefoot to understand why more organisations are embracing a new sustainable model that places #people, #purpose & our #planet alongside #profit.
HERE’S MY KEY TAKEAWAYS
- Purpose is not just an optional extra or a luxury, but is fundamental to a business’s long term success.
- The evidence shows is that it pays to keep your employees happy, in good times and bad, and is equally important across all industries.
- Alex’s study of 28 years of data found that organisations with high levels of employee happiness outperform their peers by 2.3% to 3.8% per year in long-run stock returns – 89% to 184% cumulative – even after controlling for other factors that drive returns.
- Moreover, the results suggest that it’s employee happiness that causes good performance, rather than good performance allowing a firm to invest in employee happiness.
- The global pandemic is forcing everyone to rethink how they live their lives and it’s critical to remember that organisation’s who stick by their values will see the long-term benefits.
- The method of measuring a nation’s success purely based on GDP or an organisation purely by their profit is broken. Global and business leaders must embrace a new concept of conscious citizenship that places people, purpose and our planet alongside profit.
WATCH ON CATCH UP
You can watch the full 40 minute session here.