A Business Method for enabling an enterprise to realize the full value of all aspects of Corporate Social Responsibility (CSR) considerations in making investment decisions.
Publication Date: 2012-May-31
The IP.com Prior Art Database
Disclosed is the Corporate Social Responsibility (CSR) Value System (CV System), including the CSR Value Method (CV Method) and Incentive Framework. This system (with business method, mechanisms, and enablement technology) allows companies to consistently and continuously assess the impact of their business activities, including their investments in CSR initiatives. With the CV System, businesses and government entities objectively determine the cumulative impact on life expectancy of their activities, and therefore can take into account a whole range of environmental and social impacts when deciding between various actions.
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A Business Method for enabling an enterprise to realize the full value of all aspects of Corporate Social Responsibility (CSR) considerations in making investment decisions .
Several existing systems attempt to incorporate social costs and "externalities" into the price or valuation of a good , service, or company. These approaches generally suffer from one or more of the following shortcomings:
Disparate methodologies: when methodologies do not share a common approach or goal, their results cannot be compared
Proprietary evaluations: because most companies perform Corporate Social Responsibility (CSR) evaluations internally and rarely share the details , it is difficult to question, audit, compare or verify the results; thus, they lack legitimacy
Subjective factors: many ad-hoc methods for evaluating CSR value weigh subjective factors, sometimes quantitatively (e.g., anti-unionization score in developing countries, 0 to 10). Proving or disproving these scores , and comparing them across companies, is problematic.
Incomplete criteria: critics who focus on one or more factors outside the purview of the system can accuse most scoring systems of missing important factors
Corporations are lacking the following elements that are necessary for them to be more socially responsible:
There is no standard definition of CSR (as an aggregate)
Existing resource allocation methods do not consistently account for CSR considerations or make optimal tradeoffs between inversely correlated CSR impacts
There is no accepted standard for valuing the aggregate impact of corporate actions on all aspects of CSR or for comparing companies ' impact
Enterprises are not reaping the full benefit or bearing the full costs of investment decisions which impact human life expectations
Lacking these elements, corporations are not systematically selecting the most socially responsible activities . In addition, investors, buyers, suppliers, and government regulators have very little direct influence over those selections .
Available work in this area does not reveal any consistent , objective method to prioritize and assess the return on investment of CSR -related expenses. This makes it difficult to gauge the success of CSR endeavors , and to consequently adjust decisions based on trend analysis of results and the factors that impact those results .
Related prior art includes :
Portfolio management methods applied to portfolios of financial instruments (e.g., patent 20020152151A1)
Service-oriented Architecture (SOA) and its derivatives
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Component Business Modeling (CBM)
Carbon modeling tool
Human life valuations (such as the US EPA Valuation)
Prediction markets, internal markets, and markets for ideas
The Corporate Social Responsibility (CSR) Value System (CV System), including the CSR Value Method (CV Method) and Incentive Framework, is a system (with business method, mechanisms, and e...