full transcript

From the Ted Talk by Wendy Woods: The business benefits of doing good

Unscramble the Blue Letters

Now, what about those consumer goods companies — the ones who make those products we love like coffee and chocolate? Consumer godos companies that perform best on total societal imcapt see an 11 percent valuation premium. And then if they do those smart things with their supply chain — inclusive and responsibly sourcing their product — they see a 4.8 percentage point premium on their gross margins. These numbers are significant. We've long known that things like fundamental fciialnnas, gorwth rates and financial rkiss are key drivers of valuation, but this rigorous analysis shows that social and environmental factors — total societal impact measures — are also lniekd to valuations and mnrgias. Wow. All else equal — we didn't csfonue the analysis with anything. All else being euaql, companies that perform strongly on sacoil and eneitnnarmovl areas achieve higher margins and higher valuations.

Open Cloze

Now, what about those consumer goods companies — the ones who make those products we love like coffee and chocolate? Consumer _____ companies that perform best on total societal ______ see an 11 percent valuation premium. And then if they do those smart things with their supply chain — inclusive and responsibly sourcing their product — they see a 4.8 percentage point premium on their gross margins. These numbers are significant. We've long known that things like fundamental __________, ______ rates and financial _____ are key drivers of valuation, but this rigorous analysis shows that social and environmental factors — total societal impact measures — are also ______ to valuations and _______. Wow. All else equal — we didn't _______ the analysis with anything. All else being _____, companies that perform strongly on ______ and _____________ areas achieve higher margins and higher valuations.

Solution

  1. impact
  2. risks
  3. goods
  4. equal
  5. social
  6. confuse
  7. growth
  8. environmental
  9. linked
  10. margins
  11. financials

Original Text

Now, what about those consumer goods companies — the ones who make those products we love like coffee and chocolate? Consumer goods companies that perform best on total societal impact see an 11 percent valuation premium. And then if they do those smart things with their supply chain — inclusive and responsibly sourcing their product — they see a 4.8 percentage point premium on their gross margins. These numbers are significant. We've long known that things like fundamental financials, growth rates and financial risks are key drivers of valuation, but this rigorous analysis shows that social and environmental factors — total societal impact measures — are also linked to valuations and margins. Wow. All else equal — we didn't confuse the analysis with anything. All else being equal, companies that perform strongly on social and environmental areas achieve higher margins and higher valuations.

Frequently Occurring Word Combinations

ngrams of length 2

collocation frequency
total societal 7
societal impact 5
percentage point 5
point premium 5
biggest problems 3
corporate strategy 3
good program 3
standard bank 3
corporate social 2
social responsibility 2
world today 2
core business 2
business benefits 2
total shareholder 2
shareholder returns 2
supply chain 2
percent premium 2
gross margins 2
consumer goods 2
goods companies 2
tsi lens 2
global assets 2
provide housing 2

ngrams of length 3

collocation frequency
total societal impact 5
percentage point premium 5
corporate social responsibility 2
total shareholder returns 2
consumer goods companies 2

Important Words

  1. achieve
  2. analysis
  3. areas
  4. chain
  5. chocolate
  6. coffee
  7. companies
  8. confuse
  9. consumer
  10. drivers
  11. environmental
  12. equal
  13. factors
  14. financial
  15. financials
  16. fundamental
  17. goods
  18. gross
  19. growth
  20. higher
  21. impact
  22. inclusive
  23. key
  24. linked
  25. long
  26. love
  27. margins
  28. measures
  29. numbers
  30. percent
  31. percentage
  32. perform
  33. point
  34. premium
  35. product
  36. products
  37. rates
  38. responsibly
  39. rigorous
  40. risks
  41. shows
  42. significant
  43. smart
  44. social
  45. societal
  46. sourcing
  47. strongly
  48. supply
  49. total
  50. valuation
  51. valuations
  52. wow