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Impact Accounting Debate
ARTICLE: Impact Accounting Has an Equity Problem
Contributors Andrew King, Ken Pucker, and Jesse Colman set off a spirited discussion with their article critiquing a report on “the social cost of consuming fresh water.” According to the authors, the tendency for impact accounting to treat resources in wealthy countries as more valuable than the same resources in less wealthy countries isn’t a one-off flaw but an “inevitable consequence” of the approach. Another SSIR contributor, Tech Matters CEO Jim Fruchterman, commented, “It’s not that the exercise of exploring these benefits and trying to quantify them is not useful, but falsely assuming that a single number communicates serious value is a problem.” Another reader, Will Nielsen, responded, “My worry is that someone reading this article might walk away from this ready to throw out the entire concept of impact accounting. That would be too bad. With the ever-expanding amount of data available and incredible advances in AI’s ability to process that data, now is the time to double down on building better tools to capture and communicate the value of company externalities.” Safeya Zeitoun, CEO at Tameo Impact Fund Solutions, added on LinkedIn, “The deeper issue isn’t impact accounting itself, but the fact that we keep trying to price social and environmental good or harm in market terms in a world where market value is skewed and rarely reflects real human value.”
Leadership Inspiration
ARTICLE: Future-Oriented Leadership
An article by Sara Ellis Conant and Jacob Harold offering five lessons for leadership “that sustains the individual, serves the mission, and meets the moment” resonated with several readers who added their own thoughts. Leadership coach Lynda Mansson wrote, “This aligns so well with what I often see in my coaching work with NGOs and foundations: the leaders who thrive are those who combine clarity of purpose with perspective and compassion and who take care of themselves to be able to better take care of others.” Danielle Tornquist, founder of a human-centered design firm, wrote on LinkedIn, “I would love to see more leaders embracing compassion as a competitive advantage. The social sector’s power lies in its ability to scale and amplify compassion.” On this point, impact investor Alethia Wong wrote, “Honestly, this is not easily learned … it’s not just in the decisions, it’s how they are carried out.” Philanthropy advisor and consultant Roxanne M. Cohen commented, “Staying anchored in purpose, caring for ourselves, and leading with compassion aren’t luxuries—they’re what make real impact possible. Leaders set the tone for workplace culture, and a culture of care and clarity is where real change takes root.”
Better Board Recruitment
ARTICLE: Open Board Search
Many readers added their insights and experiences to a recent article by Cleveland Justis, Susan S. Boren, Stephanie Duncan Karp, and Daniel Student outlining a process for treating searches for new board members more like job postings. “Love the thoroughness of this piece. Breaking tradition to open the board recruitment process can help build nonprofit boards that are more effective, inclusive, and reflective of the communities being served,” wrote Sherry Bernard on LinkedIn. Tokiwa T. Smith, a former nonprofit founder and executive director, added, “As a nonprofit founder, my first few boards were typically composed of my friends and other people in my network. These were the people who believed in my vision, and naturally, those who were able to contribute their time, expertise, and money. … However, at some point, when I started thinking about long-term sustainability, I realized that my board should include people outside my immediate network because I needed diverse perspectives and fresh voices to propel my organization from where we were to where we aspired to be. That is when I began conducting an open board search.”
Read more stories by SSIR Editors.