Blog

17
Apr

LAMP Companies Repeat on Global 100 Lists

Since 2006, when Profit For Life was published, 65 percent of Global LAMP Index® companies our learning lab for the book have been selected for the Global 100 list of corporate sustainability leaders. Since the Global 100 are selected from thousands of eligible companies, the high inclusion rate of LAMP companies is truly extraordinary.

The Global 100 list is compiled by an international Council of Experts created by Corporate Knights (CK), a Toronto-based media and financial research company that publishes a large circulation quarterly magazine on the intersection between business and society. Its subsidiary, CK Capital, “quantifies clean capitalism drivers for the financial marketplace.” (See: gobal100.org)

The Global LAMP Index® is a learning lab of 60 companies selected for their leadership in living asset stewardship.1 It was finalized in 2004, two years before publication of Profit For Life, and one year before the Global 100 was introduced.

Although the Global LAMP Index® and the Global 100 Index contain many of the same companies, our selection processes are radically different. Whereas Corporate Knights use Key Performance Indicators (KPIs) focused on quantifiable end results, we look instead to the qualitative means that shape those ends. Such variables include corporate structures, goals, values, mindsets and beliefs about the way the world works cultural attributes that largely determine corporate effectiveness.

On a scale of importance, we consider KPIs and other measurable results to be like the tip of an iceberg say 10% of its mass. While these indicators are important, we believe it’s far more important to look at the other 90 percent of the iceberg. (For more on the iceberg model, visit the Systematic Approach page of this site.)

The danger of relying on KPIs alone relates to the way some corporations spin their data. Too many companies appear to have made it on to the Global 100 list via cosmetics and appearance rather than substance. To verify if their KPIs are meaningful one must do the type of cultural analysis that goes into the Global LAMP Index®.

Inspiring cultures produce inspiring results

Corporate cultures founded on living asset stewardship inspire loyalty, trust and commitment among employees, suppliers, customers, investors and others who come in contact with them. These qualities accelerate flows of information that feed learning, adaptive innovation, good citizenship and profit. Consequently, it’s not surprising to see so many LAMP companies on the Global 100 list of corporate sustainability leaders.

This begs the question: why the other 35 percent of LAMP companies have so far failed to make the Global 100. If inspiring cultures lead to inspiring results, how could these exemplary companies be overlooked? There are two likely answers to this:

  • Some LAMP companies are not global enough. Nucor and Southwest Airlines both cited in Profit For Life are cases in point as each serves primarily a domestic market.
  • A larger number of LAMP companies would likely be included in the Global 100 if Corporate Knights took their selection criteria beyond KPIs into deep analysis of corporate cultures.

 

1 Living asset stewardship (LAS) puts a higher value on living assets (people and Nature) than on non-living capital assets a distinction that is fundamental to corporate culture and by extension to the trust and commitment employees feel to the organization.











XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*