How can you measure stakeholder value creation in your business?

1 Define your purpose

The first step is to define your purpose as a business, or why you exist and what you aim to achieve. Your purpose should reflect your core values, vision, and mission, and align with the United Nations Sustainable Development Goals (SDGs). Your purpose should also be clear, concise, and inspiring, and guide your decision-making and actions.

2 Identify your stakeholders

The next step is to identify your key stakeholders and understand their interests, needs, and expectations. You can use various tools and methods to map and prioritize your stakeholders, such as stakeholder analysis, surveys, interviews, focus groups, or workshops. You should also consider the potential impacts and risks of your activities on your stakeholders, and how they can affect your performance and reputation.

3 Set your goals and indicators

The third step is to set your goals and indicators for stakeholder value creation, based on your purpose and stakeholder analysis. Your goals should be specific, measurable, achievable, relevant, and time-bound (SMART), and aligned with the SDGs and other relevant standards and frameworks. Your indicators should be quantitative or qualitative measures that track your progress and performance towards your goals, and reflect the value you create for your stakeholders.

4 Collect and analyze data

The fourth step is to collect and analyze data on your stakeholder value creation indicators, using reliable and consistent sources and methods. You should also ensure that your data is accurate, complete, and transparent, and that you comply with ethical and legal requirements. You should also compare your data with your goals and benchmarks, and identify your strengths, weaknesses, opportunities, and threats.

5 Report and communicate results

The final step is to report and communicate your results on stakeholder value creation, using appropriate formats and channels. You should use clear and engaging language, visuals, and stories, and highlight your achievements, challenges, and learnings. You should also follow the principles and guidelines of credible and recognized reporting frameworks, such as the Global Reporting Initiative (GRI), the International Integrated Reporting Council (IIRC), or the Sustainability Accounting Standards Board (SASB).

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?