The Latest CEO Metric You Can't Afford to Ignore: Return on Responsibility
Is Return on Responsibility the growth accelerator you've been looking for?
If you're a CEO looking for new opportunities to boost growth, you may already be familiar with 'Return on Responsibility', or RoR.
If not, let's talk about the latest power metric you need to know.
Corporate social responsibility (CSR) activities have long been seen as a way to improve a company's public image, but the question remains whether they make sense from a financial perspective. The academic answer is yes — according to experiments, a company's investment in CSR activities can lead consumers to rate its products more highly.
For those interested in a real-world test, all eyes are on one CEO leading the way in using RoR to drive growth — Ann Mukherjee is the chairwoman and CEO of Pernod Ricard North America, the largest operation at the world's second-biggest producer of wine and spirits.
If you're interested in using Mukherjee's RoR strategy to accelerate growth, here are three key takeaways from her approach:
Make It Personal
Mukherjee has been open about the impact of alcohol abuse on her life, including being a survivor of sexual and domestic abuse and losing her mother to a drunk driver. She has made alcohol responsibility a personal mission and focuses only on issues related to her and her company's purpose of conviviality. By prioritising issues related to their shared purpose, Mukherjee encourages her team to be mindful of how their efforts contribute to the company's success.