People are the focus of organizations of excellence.
Social performance is a major trend in the corporate world. Companies have realized that people are looking at them to have a positive impact in areas other than profitability. They are being scrutinized for the effect they have on the communities in which they operate, as well as on society at large.
Function
Social performance evaluations are audits of a company's current vision, systems and message to determine how effective their programs are in creating a positive societal impact. These evaluations can be used to fine-tune the programs and how they are implemented.
Significance
Quality awards, such as the Malcolm Baldrige Award for Organizational Excellence, measure social performance effectiveness along with customer service and operational excellence when selecting winners.
Prevention/Solution
Social performance evaluations show areas of weakness in a company's actions that can damage that company's interactions with its community and its stakeholders.
Types
Many evaluation companies use different measurement systems. One such system is the internationally recognized GIRAFE system. The GIRAFE system looks at governance and decision making processes, information tools, risk analysis and control, activity and loan portfolios, funding and efficiency.
Considerations
These evaluations work best with companies that have the ability to be sustainable so that they can commit to long-term social impact.
