The Weekender: Companies That Do Well Also Do Good (CFO Magazine)
Few questions dominate business today like the link between profitability and responsibility, short-term returns and long-term shared value. Do companies that do well financially do the most social impact? Or is the companies that do the most social impact that also show superior social impact?
This article from CFO magazine provides research findings from exploring this question: "Is there a link between how well companies deliver on their social mission and whether they create long-term value for shareholders?"
Excerpt: "Is it socially responsible for a management team to focus on long-term shareholder value? Harvard Business School professors Joseph L. Bower and Lynn S. Paine write in Harvard Business Review that the goal of driving shareholder value is 'the error at the heart of corporate leadership.'
While this has become a popular sentiment, the truth is that companies that succeed for shareholders not only generate valuable funding for potential environmental initiatives but also demonstrate a propensity to be more socially impactful. And this is not just speculation — the conclusions in this article result from tracking the total shareholder returns (TSR) of companies that were recognized for their social impact and for their investments in stakeholders at large.."