Do Retailers Need A Chief Impact Officer?

McDonald’s last year hired Jon Banner as its chief impact officer and EVP, joining several other companies in adding the title to their C-suite.

“Jon is the perfect leader to oversee our Sustainability & ESG, Government Relations and Public Policy, Communications and International Corporate Relations functions, as well as Ronald McDonald House Charities – building on the momentum of the Impact function as we strengthen and protect our reputation around the world,” McDonald’s CEO Chris Kempczinski said of the hire.

Mr. Banner held a similar role at PepsiCo.

The chief impact officer role guides ESG (environment, social, and governance) and CSR (corporate social responsibility) policies. It is seen as broader than the chief sustainability officer and more publicly-facing than the chief purpose officer. Chief impact officers, according to Kindred, “tend to have an external focus around the impact of the business’ activities and how they align with the company’s mission and values.”

Celebrity hires in recent years have put a spotlight on the position. Taco Bell appointed Grammy award-winning artist Lil Nas X as chief impact officer in an honorary role. Prince Harry, the Duke of Sussex, was appointed chief impact officer of BetterUp, the virtual coaching platform.

IBM, Flexport and KPMG are among a number of other firms that have added a chief impact officer to their C-suite as studies continue to show corporate responsibility becoming more important to consumers.

The 2022 Bentley University-Gallup Force for Good study found most Americans would be willing to pay extra for a t-shirt if the company that made it was known for having a positive impact on its local community (73 percent), treating its employees well (72 percent), having a positive environmental impact (63 percent) or contributing to charities (60 percent).

“Companies are feeling pressure from all sides to pursue impact in [their] work both internally and externally,” Alex Budak, author of “Becoming a Changemaker” wrote in an Inc. column. “To make this happen, leadership teams need someone to elevate impact from an isolated department to an essential lens for making decisions.”