The collective shrug: embracing reasonableness over rigidity

The “collective shrug” is a metaphor used in the Common Framework to signal a shift in mindset about impact data aggregation. It means accepting that we may never get perfectly uniform or precise data across a diverse ecosystem—and that’s okay.

The collective shrug refers to a broad, social acceptance of estimates and differences in methodologies. In financial accounting, there are all sorts of estimates, such depreciation rates. There are also differences in methodologies, such as different approaches to revenue recognition or valuing inventory. These estimates and methods are allowable and valid. Companies produce financial statements filled with these estimates and different methods. Users of financial statements overlook these differences: revenue is revenue; inventory is inventory. We all do a collective shrug.

A flexible approach to impact measurement will require an acceptance of estimates and variations in methodologies. We will need to do a collective shrug.

Instead of striving for an impossible level of accuracy or uniformity, we aim for reasonableness and transparency over rigid uniformity.

In practical terms, the collective shrug acknowledges that:

• Aggregated indicators won’t be exact, but they can still be useful. Different organizations may define or measure the same concept differently, but if they’re close enough and transparently grouped, they can be aggregated.
• It’s better to interpret diverse data carefully than to ignore it or impose a one-size-fits-all metric.

Without the collective shrug, efforts to aggregate impact data often fall into two traps:

• Forcing uniform indicators which can alienate or burden social purpose organizations.
• Avoiding aggregation completely, leaving decision-makers with no insight.

So instead, we “shrug”—collectively—and agree: “Let’s not pretend this is perfect, but let’s do it transparently, reasonably, and usefully.”