?

SUSTAINABLE ORGANISATIONA paradigm for a fairer Society

TRUST results from

MERIT and ACCOUNTABILITY

MERIT

is a product ofKNOWLEDGE and TRANSPARENCY

COMPETITIONfrom

COOPERATIONto

Trust • Versatility & Flexibility • Empowerment, Mentoring • Passion, Optimism

AUTHORITYfrom

RECOGNITIONto

Transparency • Knowledge & Influence • Respect • Commitment

UNFAIR WAGESfrom

FAIR REWARDINGto

Adequate metrics & Accountability • Harmony • Full Mobilization • Meritocracy

SHAREHOLDERS VALUEfrom

THE SORG INDEXto

Internal & external Impact • Usefulness, Meaning • Non-speculative • Sustainability

COMPETITION

AUTHORITY

UNFAIR WAGES

MARKET CAP

COOPERATION

RECOGNITION

FAIR REWARDING

SORG INDEX

VALUES

IMPACT

RELATIONSHIPS

METRICS

TO CREATE AN INDEX, USING ONLY PUBLIC DATA, THAT ALLOW COMPARISONOF ANY ORGANISATION REGARDLESS OF SIZE, INDUSTRY OR PURPOSE

CH

ALL

EEN

GE

TRANSPARENT COMPARISON

SUSTAINABLE ORGANISATION INDEX (SORG)

SORG = SORGI x SORGII x SORGIII

THE PRODUCT OF THE THREE INDEX INDICATES A CUMULATIVE EFFECT AND HOW BALANCED THE ORGANISATION IS - INTERNALLY AND EXTERNALLY

SORGI MEASURES THE BALANCE OF THE ORGANISATION WITH THE COMMUNITY; SORGII INSIDE THE ORGANISATION BALANCE; HARMONY THE INTERNAL COHESION.

COMMUNITY2xTEAM MEDIAN2

OWNERS2xTEAM AVERAGExCEOSORG =

SUSTAINABLE ORGANISATION INDEX I (SORGI)

COMMUNITY(3)= (REVENUES-COGS(1)-INTERESTS(1)+TAXES(2)+IMPACT)

OWNERS= NET INCOME-TEQUITY(4)

TEQUITY=NET INCOME x TEAMOWNERSHIP

TEAMOWNERSHIP=TOTAL SHARES OWNED BY TEAM / TOTAL SHARES

COMMUNITY (5)

OWNERS

(1) COGS AND INTEREST WILL BENEFIT OTHER ENTITIES. AS ITS EXPLAINED IN THE ECONOMIC FLOW MODEL(2)TAXES COME BACK TO COMMUNITY(3)ORGANISATIONS WITH NO REVENUES CALCULATE USING ONLY IMPACT.(4)FOR NET INCOME >= 1 (5)TO DO A HISTORIC ANALYSIS DO SUMMATION OF BOTH FACTORS FOR THE YEARS OF ANALYSIS

ESSENTIALLY IT ANALYSES THE OWNERS’ INVESTMENT EFFECT ON THE COMMUNITY

SORG I =

HARMONY INDEXCEO=CEO SALARY+ALL BENEFITS

TEAM=TEAM SALARY+ALL BENEFITS

COHESION FACTOR IMPLIES THATCEO <= MEDIAN TEAM x 12

TEAM MEDIAN2 TEAM AVERAGE x CEO (1)

FIRST PART ASSURES THAT THE DISTRIBUTION IS CLOSE TO A NORMAL OR SKEWED NEGATIVELY ( TO HIGHER VALUES) CURVE

SECOND ENSURES COHESION IN TOP (CEO) RETRIBUTION

(1)FOR CEO GREATER THAN TEAM MEDIAN. OTHERWISE CEO= TEAM MEDIAN.

HARMONY =

COMMUNITY(3)= (REVENUES-COGS(1)-INTERESTS(1)+TAXES(2)+IMPACT)

OWNERS= NET INCOME-TEQUITY(4)

TEAM=TEAM SALARY+ALL BENEFITS

TEQUITY=NET INCOME x TEAMOWNERSHIP

TEAMOWNERSHIP=TOTAL SHARES OWNED BY TEAM / TOTAL SHARES

IT ANALYSES BALANCE BETWEEN OWNERS AND TEAM, SHARING FLOW

TEAM x HARMONY (5) OWNERS

(1) COGS AND INTEREST WILL BENEFIT OTHER ENTITIES. AS ITS EXPLAINED IN THE ECONOMIC FLOW MODEL(2)TAXES COME BACK TO COMMUNITY(3)ORGANISATIONS WITH NO REVENUES CALCULATE USING ONLY IMPACT.(4)FOR NET INCOME >= 1(5)TO DO A HISTORIC ANALYSIS DO SUMMATION OF BOTH FACTORS FOR THE YEARS OF ANALYSIS

SUSTAINABLE ORGANISATION INDEX II (SORGII)

=SORG II

SUSTAINABLE ORGANISATION INDEX I (SORGIII)

COMMUNITY(3)= (REVENUES-COGS(1)-INTERESTS(1)+TAXES(2)+IMPACT)

OWNERS= NET INCOME-TEQUITY(4)

TEQUITY=NET INCOME x TEAMOWNERSHIP

TEAMOWNERSHIP=TOTAL SHARES OWNED BY TEAM / TOTAL SHARES

COMMUNITY (5)

TEAM

(1) COGS AND INTEREST WILL BENEFIT OTHER ENTITIES. AS ITS EXPLAINED IN THE ECONOMIC FLOW MODEL(2)TAXES COME BACK TO COMMUNITY(3)ORGANISATIONS WITH NO REVENUES CALCULATE USING ONLY IMPACT.(4)FOR NET INCOME >= 1 (5)TO DO A HISTORIC ANALYSIS DO SUMMATION OF BOTH FACTORS FOR THE YEARS OF ANALYSIS

ESSENTIALLY IT ANALYSES THE TEAM LEVERAGE EFFECT ON THE COMMUNITY

=SORG III

SUSTAINABLE ORGANISATION INDEX (SORG)

SORG = SORGI x SORGII x SORGIII

THE PRODUCT OF THE THREE INDEX INDICATES A CUMULATIVE EFFECT AND HOW BALANCED THE ORGANISATION IS - INTERNALLY AND EXTERNALLY

SORGI MEASURES THE BALANCE OF THE ORGANISATION WITH THE COMMUNITY; SORGII INSIDE THE ORGANISATION BALANCE; HARMONY THE INTERNAL COHESION.

SORG = COMMUNITY TEAM

COMMUNITY OWNERS

TEAM x TEAMEDIAN2 OWNERS x TEAMAVERAGE x CEO

XX

SORG I SORG II SORG III

SUSTAINABLE ORGANISATION INDEX

THE INDEX SYNTHESIZES THE ECONOMIC IMPACT AN ORGANISATION HAS ON THE GROUPS IT RELATES, INDEPENDENTLY OF ITS SIZE, LOCATION, ACTIVITY OR PURPOSE.

IT USES ONLY DATA PUBLICLY AVAILABLE

OWNERS

Financial data fromWolfram Alpha (2013 filling data)Median PayScale Dez 2014 Team was calculated by average salary x employees

SUSTAINABLE ORGANISATION INDEX

SORGI= COMMUNITY/OWNERS

SORGII=TEAM*HARMONY/OWNERS

SORG=SORGI x SORGII x HARMONY

COMMUNITY= REVENUES - COGS - INTEREST +TAXES + IMPACT*

OWNERS= NET INCOME-TEQUITY

TEAM(1)= AVERAGE SALARY x EMPLOYEES

*IMPACT WAS NOT CONSIDERED IN THIS EXAMPLE

THIS PROPOSAL OF CALCULATION SORG HAS THE ADVANTAGE TO BE VALID TO ANY ORGANIZATION SIZE

(1)WITH DATA DISCLOSE TEAM = SALARIES + ALL BENEFITS

OWNERS

OWNERS= NET INCOME

WHERE THE MONEY GO

HARMONYEMPLOYEESMEDIAN SALARY

OWNERS

Financial data Wolfram Alpha 2013 filling dataMedian PayScale Dez 2014

TEAMANALYSES

IMPACT FACTOR

INDUSTRYTYPE OF IMPACT

ECOLOGICAL HEALTH SECURITY DEVELOPMENT

OIL ITS EASY TO RELATE BARREL WITH REVENUES

- $96x BarrelTHIS IS AN OFFICIAL VALUE

-0,2x Revenues

JUNK FOOD - 2x Revenues

COMPUTERS -0,5 Revenues +2 x Revenues

LEARNING +3 x Revenues

HUMANITARIAN NGO +500xPeopleHelped +100xPeopleHelped

ARMAMENT - FxRevenues

WE SHOULD MEASURE THE IMPACT OF EACH INDUSTRY. IT SHOULD BE A FACTOR, POSITIVE OR NEGATIVE, OF REVENUES - SO IT WILL BE EASY COMPARABLE.

IMPACT CALCULATION - IDEAS

IMPACT EXAMPLE, CONSIDERING US$96 COST OF CO2

Market Cap (bn USD)

Revenue (bn USD)

Employees

Net Income (bn USD)

Cost of goods sold

Taxes Interest Average Salary

Median salary (USD per year)

CEO x MEDIAN

ExxonMobil 421,7 436,5 75.000 5,82 283,6 22,03 0,066 $44.000 $ 96.900 936

Impact (bn USD)

SORG I SORG II SORG

-437 - 44,98 0,00133 - 0,000141

30,05 0,00133 0,000094

Obs: WIKIPEDIA revenues, cogs and net income are in thousands

Financial data: Wolfram Alpha (2013 filling data)Median Salary: PayScale.com Dez 2014Average Salary: Carrerbliss,com WIKIPEDIA data from WIKIPEDIA financial report 2013

DOLPHIN RANKING

STRATEGY, MERIT, HARMONY create

SUSTAINABILITY

SUSTAINABILITY empower JUSTICE, SECURITY

and ultimately

HAPPINESS

TRUST and FAIRNESSdevelop

HARMONY

MERIT and HARMONY promote

MOBILISATION