Engaged Company Stock Index Outperforms S&P by 34%

The Engaged Company Stock Index has outpaced the S&P 500 Index by 34% since it was launched Oct. 18, 2013. Created by McBassi & Co. and the Enterprise Engagement Alliance (EEA), the Index may be the most compelling proof so far that engagement can affect mid- to long-term share price performance. The Index tracks 30 selected companies on an ongoing basis from a specific date and baseline, rather than on a retrospective basis. Companies are selected according to a formal set of parameters developed by McBassi for their book, Good Company: Business Success in the Worthiness Era, that track customer, employee and community engagement and are reflected in the framework presented in Enterprise Engagement: The Textbook, published by the EEA. The Engaged Company Stock Index (ECSI) was created based on the hypothesis that companies with highly engaged external and internal audiences would consistently outperform the S&P 500, and this has indeed occurred. These results reinforce other research showing that engagement can affect financial performance for privately-held organizations as well. These results come at an interesting time. A recent survey of CEOs by PriceWaterhouseCoopers found that 90% consider customer engagement a top priority this year, and 80% hold the same view for employee engagement. For complete information on the Engaged Company Stock Index, go to www.enterpriseengagement.org/stockindex