Total Impact Measurement and Management

In this case, the brewer wants a balanced, holistic analysis to support its decision. An approach that compares the total long-term impact of using barley with that of a locally grown alternative will provide the basis for transparent decision making on sourcing. This new total impact perspective could also help address, for example, security of supply and foreign exchange exposures. In addition, it would allow the brewer to develop a clearer long-term strategy for the business and help engage with stakeholders on the basis of a more credible analysis of the impacts of business decisions.

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A hotel group has the option of building and operating a new hotel on a Greenfield site on a Caribbean island. In our hypothetical example, we examine the economic, tax, environmental and social impacts on the island, as well as the financial performance of the two options.

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In this example, the mining company are developing a new mine design, and wants a balanced view on the wider long-term impacts of the access road options. Proactively understanding and comparing the long-term impacts of widening and repairing the existing access road or building a new access road will help the company make informed decisions and mitigate and manage stakeholder challenges on granting approval for the mine design. Since these external impacts affect the mining company’s ability to obtain and maintain its ‘social license to operate’, this is also the first step towards understanding the resultant internal costs and benefits for the business, for example, in terms of brand value, reputation and ultimately the bottom line.

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The Local Enterprise Partnership (LEP) is running a range of programmes aimed at enhancing local economic prosperity and wellbeing; the local economy in three years' time is examined under two scenarios, one without the initiative (BAU) and one including the initiative.

The LEP is seeking to articulate and demonstrate to its stakeholders the difference its activities make to the City Region.

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In this example, a waste water treatment company is discharging its effluent water into nearby coastal waters. The company is under pressure to reduce its impact on the marine environment and wants a balanced view on the wider long term impacts of the options it could pursue to achieve these. Conducting an impact assessment can help the company understand the full breadth of impacts associated with the different options available to it. Whilst helping aid the company’s strategy, this method will also help manage stakeholder challenges and pressure by showing an informed decision has been made.

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