The Inter Business Index Developing a Tool for Measurement and Comparability of Holistic Sustainability in Businesses

Abstract

The scope of sustainable development is undoubtedly growing, and becoming increasingly more important due to the process of globalization, amounting in complex environmental, societal and economic issues. Although the subject of business sustainability has been gaining traction and resulted in increased knowledge in the field, the business sustainability discourse is still at a young stage, where the different streams of approaches, definitions, systems and measures are fragmented and challenged. Today's global challenges are so large and complex that they require a new kind of problem-solving and way of doing business. Identifying solutions requires a diversity of perspectives, approaches and capabilities, and the business sector plays a critical role. The integrated approach has been examined to some extent, proposing a holistic manner of moving on to true business sustainability, and a sustainable development on a global scale. This article presents the concept of Inter Business and the Inter Business Index, a tool for measurement and comparability of holistic sustainability in businesses. The Inter Business framework consists of four key-components that describe the skills needed for future-preparedness. In our research, we have analysed the 50 biggest corporations in Sweden and identified purpose, empathy, system approach and transformation as components that respond to the hypothesis that interconnection and integration are key for companies to survive and thrive, whilst contributing to society at large.

ALMOST INTERCONNECTED—How Sweden’s 50 Largest Companies Apply a Systems Approach to Sustainability

“…The Inter Business framework focuses on analyzing the integration of sustainability in priorities, stakeholder dialogue and external communication of the company-bringing about a holistic view of the future preparedness of any company, market or sector analyzed (Hallin et al, 2017 stakeholders and communications the Index determines how well a company integrates the four abilities in their strategy by applying a qualitative analysis to the material. The analysis is in part based on a set of 12 indicators-values, strategy, main services, results, approach, priorities, transparency, sustainability context, stakeholder inclusiveness, key assets, diversity in board and corporate governance-and in part one additional measurement aimed at each capability as it is manifested in relationship to stakeholders (Hallin et al, 2017).…”

“…The Inter Business Index is a tool for measurement of holistic value creation in business, providing comparable results over sectors and time. It is based on an identified gap, that corporate sustainability as understood today is context-specific and unable to take on our shared complex and difficult societal challenges, at the same time as higher demands are placed on businesses to do their part of solving them (Hallin et al, 2017).…”

“…The analysis is built on four abilities or key-components found to be of utmost importance when working towards a holistic sustainability agenda; purpose, empathy, systems approach and transformation (Hallin et al, 2017). The ability of systems approach in the Inter Business Index is important for the analysis as it represent the company's ability to understand the system they operate in; macro challenges society is facing and capability prioritize thereafter (Hallin et al, 2016).…”

“…The total sum of the scoring is an aggregated result of the medium value of the core analysis and the medium value of the content analysts, each indicator is rated 0-100 percent and total score is the medium value of both measurements (Hallin et al, 2017).…”

What Purpose Does a Company Serve in the World? Swedish Students and Sustainability Professionals in Dialogue on Corporate Sustainability

“…Research done by the Inter Business Initiative propose a holistic view of sustainability, business and their value creation as one way forward when developing truly sustainable structures. Through published research we have found four abilities or key-components to be of utmost importance when working towards a holistic sustainability agenda; purpose, empathy, systems approach and transformation (Hallin et al, 2017). Understanding the value that companies bring to the world, and understanding their place in the system, how they affect all stakeholders, having the ability to build relationships and understand the information found there as well as having the ability to transform at in relation to a changing environment proved important for company success for future preparedness.…”