Profitability Analysis

Runaway costs have plagued the US healthcare system for decades, and providers are always looking for ways to increase efficiency without jeopardizing care. Developing smarter key performance indicators can help.

Financial purists have long questioned whether corporate, environmental, and social initiatives benefit the bottom line and how to quantify their impact. In this article, we put aside motive—of genuine altruism or self interest—and philosophical debates around moral obligation. Instead, we examine the results of studies around whether corporate responsibility initiatives positively impact profitability, examples of companies that have implemented such measures successfully, and recommendations for those looking to do so.