OECD Workshop: Measuring Business Impacts on People’s Well-being, 23-24 February 2017, Paris, France, More information at: http://www.oecd.org/statistics/oecd-workshop-on-measuring-business-impacts-on-peoples-well-being.htm

1. Measuring
Business Impacts on
People's Well-being
OECD, Feb 23 and 24, 2017
Gerd Hofielen – gerd.hofielen@ecogood.org

2. Economy for
the Common Good
Neo-Lib
●
Goal: profit
●
Strategy:competition
ECG
●
Goal: common good
●
Strategy: cooperation
Success indicators
●
Profit, loss balance Common Good Balance
●
GDP Common Good Index

3. The Economy for the
Common Good is...
Dominant system currently: Neo-liberalism
●
Profit maximation
●
Competition
●
Dominance of international corporations
●
Companies must grow
●
Competition between countries & regions
Ecological and social aspects are secondary.
...an alternative economic system
88% want to have a new economic system.

4. The Idea
The Economy of the Common Good
●
What makes communities
thrive?
●
Good human relationships!
●
Which values lead to
good human relationships?
●
Idea: create an economic
system with these values.

5. An Alternative
Economic System
Social JusticeCo-determination
& Transparency
Ecological
Sustainability
Solidarity
Human Dignity

6. 6
...in Europe
Treaty Establishing a Constitution for
Europe, Article I-2:
„The Union is founded on the values of respect
for human dignity, freedom, democracy, equality,
the rule of law and respect for human rights,
including the rights of persons belonging to
minorities. These values are common to the
Member States in a society in which pluralism,
non-discrimination, tolerance, justice, solidarity
and equality between women and men prevail.“

7. The Matrix.

8. Feedback from
ECG Businesses
VAUDE, the outdoor clothing company and one of
the ECG pioneer companies, has worked on its
ecological product design and reducing
environmental impact:
“The Economy for the Common Good is an
important element of sustainability
reporting for VAUDE. We are creating
even more transparency, and engaging in
critical dialogue with the public and the
common good network” (Antje von Dewitz,
VAUDE CEO)
http://csr-report.vaude.com/gri-en/csr-standards/economy-for-the-common-good.php

9. 9
VAUDE ECG Balance Sheet

10. 10
Benefits of ECG
●
Strengthens purpose
●
ECG balance = 360-degree view
●
Cooperation platform for like-minded organisations
●
Attracts employees looking for meaningful work
●
Attracts ethical customers
●
Reduces staff turnover and recruitment costs
●
ECG certified organisations can give input into
ongoing development of the Matrix

11. 11
Ethical supply
management
A1.1 Consideration of regional, ecological and social
aspects or superior alternatives (relevance: high)
Sub-indicator First steps
(0 - 10 %)
Experienced
(11 - 30 %)
Advanced
(31 - 60 %)
Exemplary
(61 - 100 %)
Regional,
ecological and
social aspects /
superior
alternatives are
considered…
(Relevance:
high)
… selectively in
cases of
products with
negative social
and / or
ecological
effects (green
electricity)
… in regard to
some key P/S
… in regard to a large
part of key P/S
+ in comparison very
low consumption or
clear reduction of
critical materials with
no superior
alternative (see
FAQs)
… in regard to all
key purchased
P/S ...
+ innovative
solutions for
avoidance of
critical materials
with no superior
alternative

12. 12
Just income
distribution
C4.1 Income divergence in the company (relevance:
high)
Sub-indicator First steps
(0 - 10 %)
Experienced (11 -
30 %)
Advanced
(31 - 60 %)
Exemplary
(61 - 100 %)
Income
divergence in
the company
(Relevance:
high)
Maximum
divergence:
up to 20
employees: 1:8
20 to 200
employees: 1:10
over 200
employees: 1:12
Maximum
divergence:
up to 20
employees: 1:5
20 to 200
employees: 1:7
Over 200
employees: 1:9
Maximum
divergence:
up to 20 employees:
1:4
20 to 200 employees:
1:5
over 200 employees:
1:6
Maximum
divergence:
up to 20
employees: 1:2
20 to 200
employees: 1:3
over 200
employees: 1:4

13. 13
Ethical Customer
Relations
D5.2 Active contribution to raising legislative
standards (relevance: moderate)
Sub-
indicator
First steps
(0 - 10 %)
Experienced (11 -
30 %)
Advanced
(31 - 60 %)
Exemplary
(61 - 100 %)
Active
contribution to
raising
legislative
standards
(Relevance:
moderate)
Transparent disclosure
of political activities
No resistance against
higher social and
ecological legislative
standards
Commitment to
higher legislative
standards within
the given sector
(e.g. in
cooperation with
industry sector
representative)
Cross-sectoral
commitment to
higher legislative
standards (e.g.
cooperation with
NGOs)
Transparent
lobbying
processes which
include key
stakeholders
(e.g.
formulation of
bills)

14. 14
Social impact of
products & services
E1.2 Ecological and social comparison of products /
services to alternatives with similar final benefit
(relevance: moderate or high)
Sub-indicator First steps
(0 - 10 %)
Experienced
(11 - 30 %)
Advanced
(31 - 60 %)
Exemplary
(61 - 100 %)
Ecological and social
comparison of
products / services
with alternatives of
similar final benefit
(Relevance:
moderate or high)
Selective
approaches:
e.g. the
company offers
social and
ecological
niche products
The company
offers above-
average P/S in
regard to
social /
ecological
aspects
Considerably
above sectoral
average in
regard to
social /
ecological
aspects
In comparison with
alternative, higher-
quality P/S in terms of
social and ecological
aspects, e.g. energy,
green electricity,
mobility: train / bus /
solar-driven vehicles

15. 15
Negative Criteria e.g.
●
No violation of ILO norms (international labor
standards) / human rights
●
No products detrimental to human dignity
●
No outsourcing to or cooperation with companies
which violate human dignity
●
No return on equity above 10%
●
Disclosure of all subsidiaries
●
No prohibition of workers councils
●
Disclosure of all payments to lobbyists

16. The Common Good Matrix 5.0

17. 17
Comparing the
frameworks
EMAS GC ISO
26001
GRI DNK GWÖ
Completenes X X X X X
Evaluation X X X X
Comparability X X
Comprehensib'y X X X X X
Measurability X x x X
External
auditing
X X
Legal
consequences
X

18. 18
Comparing the frameworks I
Criterion GRI G4 ISO 26000 DNK 2014 ECG 4.1
1) Legal
consequences
for
organization
No preparation of
legal consequences
due to lack of
comparability
No legal
consequences
intended
No legal
consequences
intended
Legal consequences are
a basic objective of the
concept and can be
linked to overall result
2) Core
values
UN-Global Compact
and General
Declaration of
Human Rights but
no questioning of
principle of profit
or growth, for ex.
Minimal
requirements
such as
respect for
human rights
and rule of
law
GRI/EFFAS;
see GRI
Values of democratic
constitutions, universal
human values,
objective of doing
business in society
3) External
auditing and
attestation
Attestation of
completeness and
accuracy by
external auditor
possible but no
reference to key
figures /standards
intended
Attestation
(certification
) not
intended
no
systematic
attestation
intended;
“comply or
explain”;
otherwise as
for GRI
Attestation is a
component of
application and the
prerequisite for
publishing reports

19. 19
Criterion GRI G4 ISO 26000 DNK 2014 ECG 4.1
4) Evalu-
ation
not intended not intended not intended Evaluation in points,
maximum of 1,000
points, negative points
also possible, yardstick
is implementation of
values; this expresses
the degree to which
responsibility is taken.
But: unclear in cases of
users for whom
indicators do not apply
5)
Complete
ness and
effort
required
28 Indicators,
three- column
concept, usually
external
consultancy
necessary;
determination of
what is essential
lies in the hands of
the enterprise;
‘core’ or
‘comprehensive’
version applicable
7 Principles
and core
issues cover
all CSR
aspects of
organization;
differentiation
between
"relevant“ and
“important.“
20 indicators;
no external
consultancy
necessary;
determination
of what is
essential as for
GRI; “comply
or explain”
17 Indicators with up
to 4 sub-indicators
which should all be
answered, But: no
indicators pertaining to
economy; external
consultancy helpful
when drawing up
report for the first
time.

20. 20
Comparing the frameworks III
Criterion GRI G4 ISO 26000 DNK 2014 ECG 4.1
6)
Measurability
Protocol for
gathering data,
in part use of
key figures but
no measurement
of eco-social
performance
since no
standards are
defined
No
measurement
of eco-social
performances
No
measurement
of eco-social
performance
since the GSC
refers to GRI
or EFFAS
respectively;
see GRI
Reference to “good
practices” per
indicator, level of
performance expressed
in points; measured
data from GRI, EMAS
and other frameworks
can be incorporated
7) Compara-
bility
In-company time
comparisons
possible;
comparisons
between
enterprises
require
translation by
ranking agencies
A management
standard, not
designed for
reports
Comparability
difficult since
measurability
is not given,
but more
compact
format than
GRI
Attestation on basis of
points awarded per
indicator and overall
result; thus
comparison of time,
enterprises and sectors
is possible

21. 21
Comparing the frameworks IV
Criterion GRI G4 ISO 26000 DNK 2014 ECG 4.1
8)
Comprehen-
sibility
No easily
understandable
overview, large
number of pages
and latitude for
design make
many GRI
reports more
difficult to read
Yardsticks for
comparison of
companies and
sectors is
missing
Yardsticks for
comparison of
companies
and sectors is
missing;
great latitude
for design but
essentially a
compact
scheme
Overall result is shown
in tabular form on one
page in form of points;
diagrams allow for
better overview of
strengths and
weaknesses; uniform
depiction.
9) Legitimacy
of leading
organization
Evolved via
multi-
stakeholder
forum;
documents freely
accessible
Evolved via an
open ISO
committee;
standard only
available
against
payment of fee
Evolved by
initiative of
German
government;
appointment
of RNE not
very
transparent
but codex
freely
accessible
Evolved as a
democratic movement
and association;
participation in further
development of
balance sheet
particularly on part of
users is desired; all
ECG documents are
freely accessible

22. Everybody can
be a Part of it!
●
companies
●
public institutions
●
associations
●
communities
●
regions
●
private persons
participative
open-source
growing
botton-up

23. Facts & Figures
●
2,000 corporate supporters
●
350 audited ECG Balance Sheets
●
7,000 individual supporters
●
100+ local chapters
●
Cities and local authorities
including Salzburg,
Seville, Malaga, Stuttgart,
Sudtirol
●
Activity in 22 countries

24. 24
Questions? Comments?
Thank you for your attention!
Gerd Hofielen – gerd.hofielen@ecogood.org
http://www.ecogood.org

25. How to start?
●
Decide whether to go solo or work with a
peer group
●
Identify who in the organisation is going to
be involved
●
Work through each indicator group in turn
●
Write Common Good Report and assign
initial scores for each indicator
●
Have the report and scores evaluated by
peer group or audited by independent ECG
auditor

26. Options to Support
Ethical Companies
●
Lower taxes
●
Preferred acces to R&D funds
●
Low-interest loans
●
Advantages in public purchasing

27. Further Pieces
of the Puzzle
Ideas & Proposals
democratic discussion in
municipalities and regional
constituents
democratic voting