Small business, big impact (how to measure your social and environmental performance as a business)

Peter Drucker famously stated, "What gets measured gets done." This has been at the forefront of my mind lately as an impact entrepreneur, causing me to reflect on how I measure the impact of what the Design For Good Club does. So, this week, I took a deep dive into that question.

Where did I start?

I looked at existing frameworks and standards to begin with, unearthing a few notable ones:

• Global Reporting Initiative (GRI): One of the most prevalent and comprehensive frameworks for sustainability reporting, it provides principles and indicators for organisations to measure and report their economic, environmental, and social performance.

• The B Impact Assessment (BIA): This extensive assessment, used by B Corps, measures a company’s overall social and environmental performance, examines how the company’s operations and business model impact workers, community, environment, and customers.

• United Nations Sustainable Development Goals (SDGs): This is a global compass guiding us towards sustainable development. While not business-specific, it offers 17 goals with specific targets that businesses can align with, and measure their progress against.

Deciding on a framework to follow

As a small business, the B Impact Assessment seemed like a manageable way of introducing a holistic way for me to assess the business impact on stakeholders. Looking at GRI in more detail, it seemed like overkill given the size of Design for Good Club - a bit like using a sledgehammer to crack a nut.

The B Impact Assessment evaluates a company’s practices and outputs across five categories: governance, workers, community, the environment, and customers. It gives clear benchmarking of your performance against industry standards, so you can actively improve on those areas you’re falling down on.

There’s a certification scheme available for companies that have been in operation for over a year and meet a score of 80 and above against the criteria set out in the assessment. But even if you don’t want to get certified, there’s an online tool that allows you to fill out the assessment and see how you measure up.

Some notable companies that have achieved B corp certification include Patagonia, Pangaia, Ben & Jerry’s, and Tom’s. For Design For Good Club to be part of a community that includes companies I look up to would be really cool.

The plan going forwards

1. Carve out some quality time to fill out the impact assessment

2. Share the results with you in a spirit of full transparency

3. Set our sights on scoring 80+

4. Aim to submit our assessment for B Corp certification in 2024

   
   

So, I invite you to join me on this journey of self-assessment and growth. What are we, if not measured by our impacts, in personal life, career, or business? And more importantly, how do we measure them?