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• Working Paper | HBS Working Paper Series | 2020

  Accounting for Product Impact in the Airlines Industry

  George Serafeim and Katie Trinh

  We apply the product impact measurement framework of the Impact-Weighted Accounts Initiative (IWAI) in two competitor companies within the airlines industry. We design a monetization methodology that allows us to calculate monetary impact estimates of fare affordability, timeliness and gate control, among other factors. Our results indicate substantial differences in the impact that competitors have through their products. These differences demonstrate how impact reflects corporate strategy and informs decision-making on industry-specific areas, including airline route structure choices.

  Keywords: Product Innovation; Product design; Impact; impact investing; impact measurement; ESG; ESG (environmental, social, governance) performance; ESG (environmental, social, governance) performance; ESG ratings; social corporate responsibility; corporate social responsibility; social impact; air transportation; aviation; Product; Product Design; Product Positioning; Society; Air Transportation Industry;

  Citation:

  Serafeim, George, and Katie Trinh. "Accounting for Product Impact in the Airlines Industry." Harvard Business School Working Paper, No. 21-066, November 2020.  View Details

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• Working Paper | HBS Working Paper Series | 2020

  Accounting for Product Impact in the Consumer Finance Industry

  George Serafeim and Katie Trinh

  We apply the product impact measurement framework of the Impact-Weighted Accounts Initiative (IWAI) in two competitor credit card providers within the consumer finance industry. We design a monetization methodology that allows us to calculate monetary impact estimates on cardholder access to credit, affordability for merchants, financial health, and recyclability, among other factors. Our results indicate substantial differences in the impact that competitors have through their products. These differences demonstrate how impact reflects corporate strategy and informs decision-making on industry-specific areas.

  Keywords: Product Innovation; Product design; Impact; impact investing; impact measurement; ESG; ESG (environmental, social, governance) performance; ESG (environmental, social, governance) performance; ESG ratings; social corporate responsibility; corporate social responsibility; social impact; consumer finance; financial services; Credit Cards; Financial inclusion; Product; Product Design; Product Positioning; Society; Financial Services Industry;

  Citation:

  Serafeim, George, and Katie Trinh. "Accounting for Product Impact in the Consumer Finance Industry." Harvard Business School Working Paper, No. 21-061, November 2020.  View Details

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• Working Paper | HBS Working Paper Series | 2020

  Accounting for Organizational Employment Impact

  David Freiberg, Katie Panella, George Serafeim and T. Robert Zochowski

  Organizations create significant positive and negative impacts through their employment practices. This paper builds on the substantial body of research regarding job quality and impact measurement to present a framework for monetized analysis of employment impact. We identify and propose a framework for measuring the four most salient dimensions of impact for employees, including wage quality, career advancement, opportunity, and health and wellbeing, as well as two principle impacts, diversity and employment location, for the broader labor community. The framework and methodology for calculating employment impact-weighted accounting figures is applied to several large corporations, resulting in positive impacts that range between 25 and 249% of their EBITDA suggesting significant heterogeneity in employment practices across organizations. These results demonstrate the feasibility of calculating employment impact in monetary terms, and provide a foundation for future application across additional geographies and contexts.

  Keywords: Impact-Weighted Accounts; IWAI; Employment Impact; Employment; Jobs and Positions; Quality; Measurement and Metrics; Analysis; Framework;

  Citation:

  Freiberg, David, Katie Panella, George Serafeim, and T. Robert Zochowski. "Accounting for Organizational Employment Impact." Harvard Business School Working Paper, No. 21-050, October 2020. (Revised November 2020.)  View Details

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