Measuring and benchmarking community investment
Clearly measured results provide credibility to business investment in the community.
Jess of LBG writes ” In my experience working with corporate-community partnerships, one of the key benefits of building measurement into the relationship is the ability to have an earnest discussion that goes deeper than the vision of the partnership, to encompass measurable objectives that can be tracked and assessed over time. Read more.
The London Benchmarking Group
LBG (London Benchmarking Group) is an internationally recognised standard for measuring and evaluating the community investment of an organisation. The model enables companies to account for their total community investment using standard definitions and valuations.
Understanding the LBG Model
LBG is the international benchmarking model that:
- Values company-wide contributions to the community including cash, time, in-kind and management costs.
- Provides a standard approach to quantifying and reporting the value of those contributions.
- Measures and reports leverage, where a company’s direct involvement facilitates additional community contributions.
“Kraft recently joined LBG and found it to be a very useful tool to bring together our collective investments across the business, allowing us to review and refine our efforts and to share our story.”
DANIELLE JOHNSON, KRAFT FOODS
The LBG model was introduced to Australia and New Zealand in 2005 and has since grown to around 50 members. Currently consisting of over 250 companies internationally, LBG is a member-driven organisation where companies work collectively to;
- continue development of a global measurement standard – the LBG model
- benchmark and share best practice
- develop and refine measurement tools
- improve management and implementation of CCI projects; and
- with confidence communicate CCI results to stakeholders.
The LBG model is made up of three core elements:
Inputs – an organisation’s contribution to the community
Outputs – the benefits for the community and for the business
Impacts – the difference contributions make to the community over time
- It conforms to the requirements of the Dow Jones Sustainability Index (DJSI) the Global Reporting Initiative (GRI) and the Corporate Responsibility Index (CRI)
- As part of the management of LBG Australia & New Zealand, data submitted by companies is verified to ensure it is robust and valid
- The verification process validates companies’ corporate social reporting by providing assurance the data has been accurately and comparatively checked
- There is a point of comparison of community contributions and activity within the membership and particularly for companies in similar industries.