HIP Companies Focus on the Human Side of Investing

groovy.jpgIt’s probably a fair bet that not too long ago most companies would not have thought that they would be judged by their answer to the question: “Are you HIP?” But this is no longer the case. Three companies, Fast Company magazine, HIP Investor and SVT Group have joined together to evaluate and rate publicly listed companies on “how human impact drives the bottom line--as a guide for investors seeking to generate compelling returns and benefit society,” using what they call the HIP Scorecard. (HIP stands for Human Impact + Profit.)

In its April issue, Fast Company profiles 21 companies and describes their “strategic vision, performance metrics, financial returns, accountability, and decision-making systems that supported sustainable performance.” Companies include Cisco, GE, Goldman Sachs, Nike and Walmart. As R. Paul Herman, Founder and CEO of HIP Investors puts it, "Only leaders and organizations that deliver human impact and profit simultaneously will achieve world-class performance - and lead society towards a sustainable way of living and thriving."

But being HIP is not for only for corporations. They also offer advice on how to “Get a HIP Replacement,” by showing individuals how “to be HIP in how you buy, how you innovate, where you invest, and how you vote.” Maybe it’s time to measure ourselves by just how HIP we are.

Caroline Heine

Posted at 6:00 AM, Apr 10, 2007 in Cross-Sectoral Strategies | Permalink | Comment