Good for profit people and planet

Why organisational culture should be a cornerstone of investor analysis

There is a huge opportunity for active investors to develop their understanding of organisational culture, especially with the development of new tools and techniques. 

Culture is a powerful driver of organisational performance and employee wellbeing, yet few investors are currently evaluating it in a systematic way. While the role of poor culture in ethical scandals and bankruptcies is well understood, it is only recently that the value of good culture is being recognised in driving innovation and growth (while also supporting DE&I and ESG outcomes). 

Difficulties in measuring cultural factors and a lack of training in cultural assessment have got in the way of investor action and may be hampering corporate attention with a recent survey suggesting that 37% of companies do no formal cultural assessment at all. Our work draws on evaluative frameworks, new AI-powered tools and the insights of specialist investors and culture experts to highlight what's possible and the size of the prize.  

Ahead of the publication of IBE’s report into the role of culture in investment analysis, this IBE webinar gave more information.