Return on Investment (ROI) is a performance measure that typically compares the financial benefits that accrue from an investment, project, or program relative to the investment’s cost. It is widely used because of its versatility and simplicity.
There have been many studies over the past 15 years that have drawn correlation between a company’s investment in Corporate Responsibility (CR) and a company’s bottom line results. Project ROI: Defining the Competitive and Financial Advantages of Corporate Responsibility and Sustainability is a landmark research report that examined these studies. The conclusion? Corporate Responsibility provides tangible financial value to a company’s bottom line. The catch? In order for results to be realized, a company’s CR program must be aligned with and support the company’s core business strategy.
In order for a CR program to align with and support a company’s core business strategy, the CR team must be aligned and integrated with key functions with profit, loss, and cost control responsibilities. In some companies that is already happening; in others, the process has not yet begun.
Steve Rochlin is Co-founder and Senior Partner of IO Sustainability. Steve has over 17 years of experience in sustainability and corporate responsibility (S&CR). He has advised leading companies across a wide variety of industry sectors on how to improve sustainability performance in a way that drives competitive success. Steve is co-author of two books on S &CR: Beyond Good Company: Next Generation Corporate Citizenship and Untapped: Creating Value in Underserved Markets. He is an expert facilitator and corporate trainer. He is frequently asked to speak on S&CR topics in conferences around the world. Steve started his career in the arena of Innovation and Technology-based Economic Development for the Center for Strategic and International Studies and the National Academy of Sciences. He obtained is MPP from the Harvard University Kennedy School of Government and his A.B. from Brown University.