
The HIP Investor

Let’s look at a less obvious Health factor—employee satisfaction. Employee satisfaction is a leading indicator that measures the involvement, engagement, and commitment of a company’s staff. Satisfied employees offer better customer service, yielding increased profits through higher sales while also improving the mental health of a company’s employ
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The leaders have found that high retention rates boost customer service and hence revenue, while keeping turnover costs low, yielding a profit advantage.
R. Paul Herman • The HIP Investor
originated by CERES.org, lays out an encyclopedia of 100-plus measures and descriptors across 10 categories. Approximately 1000 companies worldwide report to some level of GRI standards, mostly corporations with very large staffs and large-cap valuations (Ceres Web site). These measures seek to capture that which is quantifiable, but do not necessa
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Marriott is cultivating that talent with its Thirst for Knowledge (Sed de Saber ) education program to teach language and life skills to its Spanish-speaking employees.
R. Paul Herman • The HIP Investor
business strategies group. “If you are only altruistic, then you might go out of business.” But a lifecycle analysis that includes the long-term costs of all the materials and labor required contributes to a deeper understanding of the best course for both human impact and profit. In Michigan, Ford’s 10.4 acres of “green roofing” did cost up to 25
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Today, there is broad support for a HIP mindset among consumers, employees, company leaders, investors, and their advisers. While the traditional belief espouses that seeking human, social, or environmental benefits in your portfolio requires an investor to give up financial returns, HIP’s in-depth findings show that optimized businesses require a
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Accountability is reinforced through the pay and performance system. For example, the Walmart buyers have a share of their bonus now tied to the core goals of lowering waste, increasing renewable energy and putting more sustainable products on the shelves for customers to buy. Those products still need to meet the goals of “sell-through” and profit
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Unfortunately, most corporate foundations are not systematic about tracking their quantifiable impacts. The disciplined management of the rest of the corporation doesn’t regularly flow over to how charitable “investments” are made.
R. Paul Herman • The HIP Investor
Now that you have evaluated a company’s products, operating metrics, and management practices, the fun part starts—mapping it to profit and valuation. The exciting news is: Building a better world generates bigger profits and higher shareholder value.