Sustainability is About More Than the Environment

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Sustainable corporate performance is critical to our global economy.
For every “low integrity” company, investors must identify and invest in 40 “high integrity” companies to offset the risk of one unsustainable company.

“Lagging” financial indicators alone are insufficient and yet are still the primary source of anticipating future corporate performance.

56% of CFOs today say intentional misstatement of financial statements is still possible. 20% of CFOs feel more pressure to manipulate financial statements than before Enron.

Every day 1,300 people blow the whistle to the SEC to report financial and securities fraud.

“Leading” non-financial indicators are the missing link to measure the structural integrity of the financial indicators and predicting sustainable performance.

75% of Board Directors feel pressure to measure non-financial performance. 67% say they have no clue how to.

Nearly $7 Trillion was lost in the 2 ½ years following Enron, WorldCom, etc. It took another 2 ½ years to rebuild that wealth.

McKinsey predicts financial and credit assets will be $214 Trillion by 2010 (compared to $140 Trillion in 2005).

The Importance of Structural Integrity - Bear Sterns

Like buildings—companies need structural integrity. As we have seen, even the tallest buildings and biggest companies can fall virtually without warning.
As Wall Street remains focused on financial statements as the key indicator of future performance, The Integrity Institute® is focused on the foundation of the organization and the early warning signs to predict how companies […]