Accounting for More than Profits (Sponsor Letter)

Barb Houser, Shareholder, KPM CPAs & Advisors

Living and working in southwest Missouri and the Springfield area for more than 25 years, I have come to appreciate the vital role businesses play in shaping our community. Beyond economic growth, businesses have a responsibility to contribute positively to the communities they serve, nurturing a thriving environment that attracts and retains talent. To gauge and improve impact on the community, businesses must adopt a proactive approach to measuring and reporting their contributions. That would not only demonstrate transparency but also underscore their commitment to the community’s quality of place.

Metrics matter: Quantify the impact
Businesses aiming to measure their community impact need to define and quantify the metrics that align with their core values and community engagement goals. These metrics may encompass financial contributions to local charities, volunteer hours, environmental sustainability efforts or support for educational initiatives. By tracking these metrics consistently, businesses can evaluate the effectiveness of their programs.

For instance, a retail company can quantify its impact by tracking the number of jobs created, the total amount donated to local charities and the percentage of products sourced locally. On the other hand, a technology company might measure its impact through STEM education programs, partnerships with local schools or contributions to digital literacy initiatives.

Transparency in reporting: Build credibility
Measuring the community impact is only half the battle; transparency in reporting is equally important. Publishing comprehensive reports detailing the metrics and the corresponding activities builds credibility and fosters trust within the community and among stakeholders. These reports should be easily accessible and comprehensible, presenting a clear picture of the company’s efforts and their impact on the community.

By using narratives, infographics and numerical data, businesses can effectively communicate the results of their community engagement endeavors. Highlighting success stories, showcasing testimonials from community members and providing a breakdown of how resources were utilized is important. Transparency demonstrates commitment to being a responsible corporate citizen and helps create a positive reputation within the community.

Accountability: Responsible business
Accountability serves as the cornerstone of responsible business practices. Businesses should set achievable goals and regularly assess their progress in meeting these objectives. This ongoing evaluation allows for adjustments and improvements in community engagement strategies.

Accountability involves not only internal oversight but also invites external scrutiny. Engaging independent auditors or third-party organizations to review and verify community impact reports adds an additional layer of credibility. It provides assurance to stakeholders that the reported data is accurate and in line with the stated objectives.

The businesses in our community have a unique opportunity to be catalysts for positive change. Measuring and clearly sharing community impact is a powerful means to showcase a commitment to improving the community’s quality of place. By establishing meaningful metrics, promoting transparency through comprehensive reporting and upholding accountability, businesses can contribute to a vibrant, nurturing community that attracts and retains top talent. In doing so, they not only enhance their reputation but also create a lasting legacy of positive influence and growth within the community.