About SORG Index

About SORG Index

Sustainability has been a hot topic over the last three decades, although always at a very abstract and scientific level, disconnected from the concerns of the common citizen. Despite the various analyses being made by academics worldwide, most conclusions are still not considered as being part of the core of economic development. Sustainability should be considered at the genesis of any organisation - business, non-profit, NGOs, government, any type or size of an organisation.

One of the tools we have created to help measure sustainability via multi-criteria analysis is the #SORG index. It is a simple algorithm able to assess companies along the whole value chain. Its results are relevant at the genesis of an organisation and during business development.

The #SORGindex only needs publicly available information from a profit & loss (P&L) statement. P&Ls are used by all kinds of companies and organisations and are also easy to access online.

The #SORGindex is not affected by an organisation's size, location, activity or purpose. It can predict the sustainable impact of any type of company or organisation.

This all means the #SORGindex is a transversal, objective tool that can be applied and verified by anyone. This makes it both powerful and unique in our day and age.

Formula

 Where:
C = the community economic benefit as a result of the organisation activity
M = the median salary of the employees of the organisation
O = the economic benefit of the owners of the organisation
A = the average salary of the employees of the organisation
E = the highest salary in the organisation
 

SORG considers that in a sustainable organisation there is a balance among the economic benefits of the organisation's owners, its employees (the Team) and the community it serves. The SORG index measures the internal harmony of the organisation and its impact on the society where it works. In sustainable organisations namely “Dolphin Organisation”, SORG Index is greater than, or equal to, one. On the contrary unsustainable organisations, "Shark Organizations", are the ones with a SORG less than 1. Indeed, in a Sustainable Organisation, the SORG offers a much wider and comprehensive perspective of organisational value when compared to market capitalisation, as it focuses solely on sustainability. 

SORG