Wednesday, 22 April 2015

2015 CR INDEX REVEALS STRONG PROGRESS IN CORPORATE RESPONSIBILITY


(3BL Media/Justmeans) – Responsible business is not just about how a business spends its money, but also about how it makes its money. It is about managing corporate growth responsibly while reducing its environmental footprint. It is also about social responsibility, which is how a business operates as an employer, manufacturer, supplier and customer, and how it can help to build vibrant local communities as a neighbor.
Business in the Community, the Prince's Responsible Business Network in the U.K., has released its annual benchmark of responsible business, the Corporate Responsibility Index (CR Index) for 2015. The Index provides an insight into how leading companies are driving responsible business practices and serves as a valuable self-assessment tool. This robust benchmarking tool involves a rigorous process to assess companies against a diverse range of factors, from how engaged their board and senior managers are with responsible business issues to the link between remuneration and CR performance.
Analysis of the 2015 CR Index data indicates that strong progress is being made to shift responsible business up the corporate agenda. An increased number of companies are taking social and environmental concerns into account when developing new products and processes and making investments. The overall average score of the CR Index has risen from 85 percent in 2014 to 91 percent today, revealing the positive trend in making CR integral to business operations.
Research conducted by Business in the Community this year shows significant progress, but challenges remain. Out of the participants in the Index, 81 percent have carried out formal risk and opportunity assessments in the context of global megatrends. When making corporate investment decisions, 82 percent have taken ESG considerations into account. Furthermore, 85 percent of the participating companies compute the financial value that CR brings. All of these have gone up from around 65 percent last year.
Last year, Business in the Community reported a gap between the degree of stakeholder engagement and the extent to which feedback impacted business decisions. This year, it reports a significant reduction in this gap, with 82 percent systemically monitoring outcomes of stakeholder engagement and 74 percent establishing indicators to measure the quality of stakeholder engagement. Furthermore, three in four companies now incentivize suppliers by developing customized support to address key sustainability issues.

Source: BITC

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