HIP™: It stands for Human Impact + Profit, and it represents a new way of thinking about investing. For this analysis, Fast Company teamed up with two San Francisco—based firms, HIP Investor and SVT Group, to evaluate and rate publicly listed companies. Our goal: to look beyond good intentions and focus on concrete results—how human impact drives the bottom line—as a guide for investors seeking to generate compelling returns and benefit society.
We contacted 100 large companies known for their leadership in this area. The 21 profiled here were able to describe their strategic vision, performance metrics, financial returns, accountability, and decision-making systems that support sustainable performance. They also could articulate how that management approach drove human impact: namely, the health and wealth of customers and employees, environmental quality, and social equality.
HIP Investor and SVT Group—experts in quantifying human impact and how it drives innovation and shareholder value—then assessed the companies along two dimensions: HIP Practices, the state of management practices and the ability to quantify human impact; and HIP Revenue, the share of revenue that generated both positive human impact and profit.
Our analysis assessed the share of a company's products and services that contributed a net positive benefit to customers' and employees' health and wealth; the net positive benefit to society, including the environment; the value or benefit paid to employees and suppliers; and the share of that value that was fairly distributed (that is, by gender, ethnicity, or income class), including executive pay.See the HIP Scorecard
A version of this article appeared in the April 2007 issue of Fast Company magazine.