As a long-time executive involved with program design at Maritz Inc. and research and best practices through his activities at the International Society for Performance Improvement and the Incentive Research Foundation, Rodger Stotz provides a unique insight into what opportunities if any the concept of Stakeholder Capitalism and the new Securities & Exchange Commission human capital management disclosures will have on the incentive, rewards, and recognition (IRR) business.
“The Stakeholder Capitalism movement offers the IRR industry a current, evolving movement into which to integrate our services,” Stotz says in a recent interview. “This Stakeholder Capitalism framework provides a direct connection to key IRR pillars, especially People and Prosperity.”
He continues: “Stakeholder Capitalism and human capital disclosures offer specific metrics to which reward and recognition plans can be tied. The value of these rewards and recognition plans to communicate, monitor, and track, and recognize progress offers the direct connection to key business metrics often not easily accomplished in the past – particularly with non-sales employees.”
The new Securities & Exchange Commission disclosure rules, he notes, “are aimed at providing transparency and an external view of the business. How the internal and external stakeholders understand and translate these disclosures into action will determine the business opportunity. For, example, he notes, “an industry out of favor with a segment of the population (fossil fuels, tobacco, etc.) could find that these disclosures could be used by social media or drive litigation. If a rewards and recognition company were a supplier, it may also be lumped with the targeted company.”
On the other hand, “companies or industries which are in favor or neutral could find their business and brand enhanced by being involved with the continual improvement of the metrics driven by the rules.”
He elaborates. “Whether the IRR company is working with an ‘out of favor’ or ‘in favor’ business, its reputation and brand most likely will be associated with and influenced by the business being served. So, the opportunity to support and partner with a business pursuing Stakeholder Capitalism should include a risk assessment of the business’s reputation, commitment to Stakeholder Capitalism practices and disclosures, and its current social media reputation and governmental regulation issues, if any. In other words, ‘hitch your wagon’ to a business that has management that truly believes in the fundamentals of Stakeholder Capitalism and views it as a valued business strategy, not a ‘check the box’ activity.”
What will it take for solution providers to profit from this movement? “Commitment, true understanding of the requirements and belief in their business value, and on-going support through management (at all levels); and finally, for management, all stakeholders, (especially shareholders), the understanding that goal of Stakeholder Capitalism is to make a positive impact on performance and prosperity.”
Education, Certifications, and Information to Activate
Brand Media and Enterprise Engagement
A complete learning, certification, and information program and a course syllabus for educators.
Resources: The Brand Media Coalition, the only guide to the story-telling power of brands and where to source them for business, event, promotional gifting, and rewards and recognition. Enterprise Engagement Solution Provider Directory. The only directory of engagement solution providers covering all types of agencies and tactics as well as insights on how to select them.
Communities: The Enterprise Engagement Alliance and Advocate and the Brand Media Coalition free resource centers offering access to the latest research, news, and case studies; discounts, promotions, referrals, and commissions, when appropriate to third-party solution providers from participating coalition solution provider members.
Training and Certification
Enterprise Engagement Alliance Education: Certified Engagement Practitioner; Advanced Engaged Practitioner, and Certified Engagement Solution Provider learning and certification programs on how to implement Stakeholder Capitalism principles at the tactical level.
International Center for Enterprise Engagement: The only training and certification program for ISO 30414 human capital reporting and ISO 10018 quality people management certification.
The EEA offers a complimentary course syllabus for educators.
This is the definitive implementation guide to Stakeholder Capitalism, written specifically to provide CEOs and their leadership teams a concise overview of the framework, economics, and implementation process of a CEO-led strategic and systematic approach to achieving success through people. (123 pages, $15.99)
The first and most comprehensive book on Enterprise Engagement and the new ISO 9001 and ISO 10018 quality people management standards. Includes 36 chapters detailing how to better integrate and align engagement efforts across the enterprise. (312 pages, $36.)
10-minute short course: click here for a 10-minute introduction to Enterprise Engagement and ISO standards from the Coggno.com learning platform.
• The Engagement Agency at EngagementAgency.net, offering: complete support services for employers, solution providers, and technology firms seeking to profit from formal engagement practices for themselves or their clients, including Brand and Capability audits for solution providers to make sure their products and services are up to date.
• C-Suite Advisory Service—Education of boards, investors, and C-suite executives on the economics, framework, and implementation processes of Enterprise Engagement.
• Speakers Bureau—Select the right speaker on any aspect of engagement for your next event.
• Mergers and Acquisitions. The Engagement Agency’s Mergers and Acquisition group is aware of multiple companies seeking to purchase firms in the engagement field. Contact Michael Mazer in confidence if your company is potentially for sale at 303-320-3777.
Enterprise Engagement Benchmark Tools: The Enterprise Engagement Alliance offers three tools to help organizations profit from Engagement. Click here to access the tools.
• ROI of Engagement Calculator. Use this tool to determine the potential return-on-investment of an engagement strategy.
• EE Benchmark Indicator. Confidentially benchmark your organization’s Enterprise Engagement practices against organizations and best practices.
• Compare Your Company’s Level of Engagement. Quickly compare your organization’s level of engagement to those of others based on the same criteria as the EEA’s Engaged Company Stock Index.
• Gauge Your Personal Level of Engagement. This survey, donated by Horsepower, enables individuals to gauge their own personal levels of engagement.
For more information, contact Bruce Bolger at Bolger@TheEEA.org, 914-591-7600, ext. 230.