Assessment Statement
“The business unit integrates Community Interests and Concerns into its decision-making processes to enhance community wellbeing and enhance economic sustainability.”
Interpretation
This diagnostic item measures the extent to which the business unit integrates Community Interests and Concerns into its decision-making processes to support both community wellbeing and economic sustainability. It reflects an organization’s ability to operate as a responsible, inclusive stakeholder within its geographic and social context.
This includes:
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Community Awareness: Are local and stakeholder concerns actively understood?
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Decision Integration: Are these concerns considered in operational and strategic choices?
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Shared Value: Are business outcomes tied to community impact and wellbeing?
Example: IKEA U.S. Community Engagement Strategy, Score: 5 – Strongly Agree
When opening new stores, IKEA U.S. engages local communities through listening sessions, surveys, and partnerships with local nonprofits. Their feedback influences store design, transportation planning, and hiring priorities. Community Awareness: Concerns about traffic, jobs, and environmental impact are proactively gathered. Decision Integration: Store layouts and operations are adjusted to reflect local needs. Shared Value: IKEA creates jobs, supports local suppliers, and enhances livability while expanding its business footprint.
Reference: IKEA. (n.d.). Supporting Communities. Retrieved from https://www.ikea.com/us/en/this-is-ikea/community-support-pub66fd1b12
Polman, Paul, and Andrew Winston. Net Positive: How Courageous Companies Thrive by Giving More Than They Take. Boston: Harvard Business Review Press, October 5, 2021.