Tags: Corporate governance, Investors
Discover how corporate culture can be a powerful driver of investment returns.
A new report by Annabel Gillard commissioned by the Institute of Business Ethics (IBE) explores the critical role of organisational culture in investment analysis and stewardship.
Key Findings
- Strong investment case: Incorporating cultural evaluation can significantly enhance investment performance and reduce risk
- Improved business outcomes: Good cultures boost productivity, employee wellbeing, innovation, and sustainability
- Established discipline: Cultural evaluation is a proven method with valuable insights for investors
- Systematic assessment: Culture can be evaluated systematically, using human judgement, and must be weighted not calculated
- Technology's role: New tools are emerging to support cultural assessment.
Executive Summary
The report investigates how corporate culture can be assessed from publicly available data and used for investment decisions. It demonstrates that organisational culture is a powerful driver of both organisational performance and employee wellbeing.
Key benefits of a strong culture:
- Enhanced financial performance
- Reduced risk and avoided crises
- Increased innovation and growth
- Improved sustainability and inclusion initiatives.
While the investment industry acknowledges the importance of culture, it often lacks systematic integration into investment analysis. This research aims to bridge this gap by signposting tools, resources and frameworks, and sharing insights from culture specialists.
Recommendations
The report offers key takeaways and actionable recommendations for asset owners, boards, cultural experts, education providers, ESG specialists, governance bodies and investment managers.
Download the report and join the conversation
Annabel invites investment managers to engage in dialogue and explore the potential of organisational culture as the next frontier in active management.
#OrganisationalCulture #InvestmentAnalysis #Stewardship #IBE
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A report for the IBE - Is Organisational Culture the Next Frontier in Investment
Author
Annabel Gillard
Annabel was appointed to the Advisory Council in 2019.
After a career in investment management, Annabel is investigating the place of ethical values and organisational culture in an AI-driven future workplace, and its impact on the changing nature of work and society.
She spent over 20 years building institutional businesses at firms including M&G, OMAM, UBP, SWIP and Barings before retraining in AI ethics and Behavioural Science. She has been a Board Member for CFA UK and the Prudential Staff Pension Scheme, co-founded CFA UK’s ethics committee and is a member of the advisory councils of the Institute of Business Ethics and Blueprint for Better Business.
Annabel is currently investigating the role of ethical culture in ESG investment analysis, ethical frameworks for commercial use of behavioural science and the role of ethics in building trust in a digital economy. She is an advocate for the power of ethics in delivering sustainable growth and enabling talent to flourish.
Annabel was appointed to the Advisory Council in 2019.
After a career in investment management, Annabel is investigating the place of ethical values and organisational culture in an AI-driven future workplace, and its impact on the changing nature of work and society.
She spent over 20 years building institutional businesses at firms including M&G, OMAM, UBP, SWIP and Barings before retraining in AI ethics and Behavioural Science. She has been a Board Member for CFA UK and the Prudential Staff Pension Scheme, co-founded CFA UK’s ethics committee and is a member of the advisory councils of the Institute of Business Ethics and Blueprint for Better Business.
Annabel is currently investigating the role of ethical culture in ESG investment analysis, ethical frameworks for commercial use of behavioural science and the role of ethics in building trust in a digital economy. She is an advocate for the power of ethics in delivering sustainable growth and enabling talent to flourish.