Influence, Relevance, Growth
The IRG Index comprises 10 quantitative parameters that measure the influence of a Business, its relevance and its capability to become a positive contributor to economic growth. We offer aspirational parameters to foster shared, soundly-based, economic prosperity.
74%* of interviewees say that CEOs should take the lead on change rather than waiting for government to impose it. From 2018 to 2020 this has gone up 9 points.
92% believe that it is important that their employer’s CEO speak out on one or more of these issues:
- Training for jobs of the future
- Automation – impact on jobs
- Income inequality
- Climate Change
56% believe that capitalism today does more harm than good in the world.
Over the last twenty years, the world of business has undergone a profound transformation primarily, if not solely, driven by the unique circumstance that the most recent globalization was the first in human history to be based on the rule of law.
Companies have created unprecedented wealth, designed sophisticated technology and intensive global value chains, largely monopolizing the pool of available talents. The public sector, in contrast, has remained at the margins of these processes, understanding and know-how, and with limited talents. Cold-called in when crisis erupted, it has revealed itself to be ill-equipped to manage such complex and yet global problems.
There is wide consensus that business is best at generating value for owners, being both an engine of innovation and driving economic prosperity. Nevertheless, companies are still feverishly trying to provide answers to stakeholders by intensifying corporate social responsibility and, as of late, by aiming to be “sustainable”.
While these practices are commendable and should continue, they fall short of providing the leadership and answers highlighted earlier.
Against this background, the IRG index provides a holistic, quantitative and measurable methodology to help CEOs and corporations align to the changed societal context and become influential in order to inspire and cooperate with policy makers to ensure concrete answers, better understanding of industrial challenges, opportunities for job creation, and a more inclusive economic growth.
*Source: 2020 Edelman Trust Barometer
10 DRIVERS ASSESS THE “INFLUENCE”, “RELEVANCE” AND “GROWTH” OF A CORPORATION
Guidelines: The index assesses each driver: 0 Min – 3 Max, the perfect score is 30.
A business below 15 points is not influential, neither it is organized nor does it have the skills to deliver what the societal context demands.
1. Company Governance
measures the soundness of the Corporation’s governance, its board members’ capabilities/fit to support the mission, its structure and related evaluation procedures.
2. Industry Leadership
measures the impact of the Business within its own sector(s).
3. Financial Influence
measures the Corporation’s effective and perceived financial strength.
4. Industry Power
assesses the positioning of the Business in shaping the terms of the debate domestically/regionally and/or globally beyond its own sector(s) and/or adjacent ones.
5. World Citizenship
measures the Corporation’s actions, presence and leadership in key national and international fora; addressing globally/regionally/locally sustainable and innovative themes for societal/industry wellbeing; becoming a sought after partner/counselor.
6. Thought Leadership
the capability of the Business to contribute to industry/managerial development with cutting edge best practices and opinions, and to make these known to external constituencies.
7. Social Responsibility / Diversity / Sustainability
the Business’s plans and stance in supporting these themes internally (workplace) and externally.
8. Media Power
measures the ability of the Corporation to communicate the 2/3 strategic/disruptive/critical themes it stands for that contribute to societal well-being; to engage its stakeholders, to promote its world-citizenship vision in a “statesman-like” fashion; and to be perceived as being a competent advisor to hone/address the issues at stake.
9. Innovation Excellence
focuses on the role of the Business as a global innovator within the industry.
10. Human Capital
measures the attractiveness of the Corporation as a workplace/employer and its effort in supporting the professional growth of its employees and in attracting talents.