Did you know that the majority of people care more about the difference your business is making to people and planet than they do about the profit you’re making?
People care about your impact.
Research by B Lab UK* shows that 72% of people in the UK believe that businesses should be legally accountable for their impact on people and the planet, as well as maximizing shareholder value.
And the majority of the UK public would favour brands that are doing good in the world.
Why the significant change?
Gone are the days of maximising shareholder wealth at any cost. Forward-thinking businesses leaders are shaping the world they want to see for their children and future generations.
What does that mean for you as a business leader?
You’ll be familiar with producing an annual set of report and accounts, and if you are a larger business, a Strategic report. It’s a statutory requirement. You can probably do it with your eyes closed…well, almost.
The structure is generally formulaic – and dare I say, uninspiring to most of your customers and employees.
The purpose of the Strategic report under the Companies Act is to show whether the directors have fulfilled their duties by promoting the profitability of the company for theshareholders.
Of course this matters.
But what difference have you made beyond the numbers?
Because that’s what will inspire, inform, and enable your stakeholders to work with, buy from, or invest in you.
To communicate what matters, you’ll need to develop and publish an Impact Report.
This tells your stakeholders not just how much money you’ve made/or lost, but the difference you have made in the world.
simple steps to communicating impact
Identify the issues that matter – these are generally the macro concerns that are out of our direct control but can have a huge impact on the success of our businesses and the future of our society. Many businesses use the UN Sustainable Development Goals to underpin their Impact Reporting. Read more about the SDGs here
Know your stakeholders – who needs/wants to know about your impact. Identify people that matter to your business; employees, customers, investors, communities, suppliers – you’ll know best. What matters to them? Ask them! Whether you do a formal Materiality Assessment, or an informal survey, understanding what matters to your people will shape how you communicate your impact.
Go beyond the numbers – numbers only tell part of the story. Use case studies and stories to bring your impact alive.
Get everybody involved – unlike producing your Report and Accounts, producing an Impact Report can be really exciting and interesting. It offers your stakeholders to share their views on your business and tell you their stories in a way that’s transparent and meaningful.
Improve – once you really understand and can communicate your impact, look at ways you can improve. Whether it’s further reducing your carbon footprint, or better influencing your supply chain – it’s a great opportunity to learn.
Be inspired by others – There are some incredible Impact Reports available online. Businesses that are B Corp Certified must produce an annual Impact Report and there are some great examples. One + All, Cotswold Fayre, Elvis and Kresse are some of my favourites – there are loads more.
Join our Impact Writing deep-dive workshop at our Business for Good Festival on 2nd February here
Take a look at the B Lab guidance on Impact Reporting here
Understanding and communicating your impact isn’t a trend. Impact Reporting has always been core to the charity sector….as businesses, we’re just catching up!
Our people and the planet expect and deserve more from our businesses.